Massachusetts AG files lawsuit against Uber and Lyft, claiming the companies have been improperly misclassifying their drivers as contractors rather than employees to save millions of dollars in compensation.
“This needs to go nationwide, and I am having discussions with members of Congress,” she said.CJ Macklin, a Lyft spokesperson, declined to answer specific questions but sent an emailed statement claiming that the lawsuit would “eliminate work for more than 50,000 people.”
“Drivers don’t want this — most drive only a few hours a week, and they have chosen to drive using Lyft precisely because of the independence it gives them to make money in their spare time,” he wrote. Both companies have strongly resisted the California law and have even spearheaded an effort to pass a new state law that will be presented to voters in November that would effectively overturn AB5 for gig workers.
Both Lyft and Uber have said that if they are forced to reclassify gig workers as employees it would fundamentally alter their business model and have an adverse effect on their profitability, according to their latest annual reports submitted to the Securities and Exchange Commission in
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