Updated: Sep 2
A California agency is suing Uber and Lyft over alleged wage theft, saying the ride-hailing companies have misclassified drivers as independent contractors.
The state’s Department of Industrial Relations announced Wednesday that the Labor Commissioner’s Office filed separate lawsuits against the two California-based companies over their classification of drivers.
“The Uber and Lyft business model rests on the misclassification of drivers as independent contractors,” said California Labor Commissioner Lilia García-Brower in a statement. “This leaves workers without protections such as paid sick leave and reimbursement of drivers’ expenses, as well as overtime and minimum wages.”