Is the gig up? Uber, Lyft hit with worker misclassification suit

In a potentially ominous note for gig companies, Calif. officials have vowed to ensure gig workers are properly classified under state law.

By Ross Todd and Alaina Lancaster | May 13, 2020 at 06:30 AM

Uber driver Edward Nkansnh on California street in San Francisco on April 3, 2020. Nkansnh has suffered substantially less riders, instead replacing it with Uber Eats food delivery. (Photo: Jason Doiy/ALM)

California’s attorney general and the city attorneys of Los Angeles, San Diego and San Francisco have alleged that Uber Technologies Inc. and Lyft Inc. have violated California law by classifying drivers as independent contractors.

In a lawsuit filed on May 5 in the San Francisco Superior Court, the state and city lawyers assert that the ride-hailing companies have exploited hundreds of thousands of California workers.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
Educational webcasts, resources from industry leaders, and informative newsletters.
Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account? Sign In Now

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

California contractor fesses up to workers' comp fraud charges

Steve Hallo | April 12, 2024

The contractor underreported payroll by nearly $1 million to lower his workers’ comp premium.

Misunderstanding over auto policy limits potentially reduced settlement by $400K

Adolfo Pesquera | April 12, 2024

A law firm initially proposed a $100,000 settlement and alleges the insurer concealed a $500,000 death-claim limit.

Insolvency leads to Go Insurance Company liquidation

Brittney Meredith-Miller | April 18, 2024

In 2023, the Texas Dept. of Insurance issued Go a cease and desist after receiving over 50 complaints about the company's practices.

Resource Center

This guide empowers insurance carriers and risk managers to navigate complex regulations, safeguarding their brands from costly SMS and text messaging penalties.

Guide

Sponsored by gryphon.ai

The Ultimate Guide to SMS/Text Messaging Compliance

This guide empowers insurance carriers and risk managers to navigate complex regulations, safeguarding their brands from costly SMS and text messaging penalties.

Browse More Resources ›

Navigating the complexities of P&C core insurance digitization is no easy task. Explore the critical decisions between building or buying and how to achieve operational excellence in this white paper.

White Paper

Sponsored by Origami Risk

Build or Buy? Considering the Critical Decisions in P&C Core Insurance Cloud Digitization Projects

Navigating the complexities of P&C core insurance digitization is no easy task. Explore the critical decisions between building or buying and how to achieve operational excellence in this white paper.

Browse More Resources ›

As more customers “unbundle” their insurance products and spread their business among many carriers, agents must look for creative strategies to retain and grow business. Download this white paper to learn top strategies to ensure success in 2024.

White Paper

Sponsored by Melissa

Clean Your Data to Win the Customer Retention War

As more customers “unbundle” their insurance products and spread their business among many carriers, agents must look for creative strategies to retain and grow business. Download this white paper to learn top strategies to ensure success in 2024.

Browse More Resources ›

PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now

Copyright © 2024 ALM Global, LLC. All Rights Reserved.