Lawsuit Against Uber & Lyft – How This Could Impact You

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The Kaufman Law FirmMay 14, 2020Wage & Hour Law

As the economies of California and the rest of the United States begin to gradually open up after major shutdowns caused by the coronavirus pandemic, one major news story is dominating headlines in the state – the lawsuit against Uber and Lyft. The state of California and many city governments are joining together in an effort to uphold Assembly Bill 5, also known as the “gig economy” law. At the Kaufman Law Firm, we want to discuss how this lawsuit could affect you and others throughout the state.

What does this lawsuit do?

California Attorney General Xavier Becerra and various cities across the state have filed a lawsuit against Uber and Lyft over their failure to properly classify workers as employees instead of independent contractors. These two companies have been the face of recent changes to California law regarding the gig economy.

AB5 was passed last year by the California legislature and significantly restricts how employers are able to classify workers. Under the law, employers can only classify workers as independent contractors if they can prove the following:

  1. That the worker is free to perform their services without any direction or control from the company.
  2. That the worker performs tasks that are outside of the company’s usual activities.
  3. That the worker is customarily engaged in an independently established occupation, trade, or business of the same nature of the work they are performing.

The California Attorney General and others in the state argue that companies misclassify employees in an effort to avoid providing workers with their rightful benefits and protections. This includes the employee’s right to minimum wage and overtime pay, reimbursement for business-related expenses, access to unemployment compensation, workers’ compensation benefits if they are injured, and more.

Major companies that have used independent contractors have pushed back against this law. Uber and Postmates have even filed a lawsuit against the state of California, claiming that AB5 is unconstitutional. They say that the exceptions carved out under the law for certain types of workers are nonsensical.

At the Kaufman Law Firm, we will be closely watching how this case plays out. We believe that every worker has the right to be properly classified by their employer. Workers have the right to receive fair wages and benefits. As independent contractors, they do not have the same protections.

We are here to help you today

If you or somebody you love has been misclassified but an employer and received unfair wages, you should speak to an attorney as soon as possible. At the Kaufman Law Firm, we are dedicated to helping those who have been wronged by major companies in this state. We will work to secure any compensation you are entitled to, which can include any unpaid wages, interest on unpaid wages, or other benefits you were denied because you were misclassified. When you need a Los Angeles wage and hour issues attorney, you can contact us for a free consultation by clicking here or calling us at 818-990-1999.

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