LEGAL PROBLEMS MOUNT FOR UBER AND LYFT
In a ruling that could have eventual nationwide implications for personal injury claims against ride-sharing companies like Uber and Lyft, a California court on Monday to reclassify their drivers in the state as employees, marking the latest escalation in an ongoing legal battle over a new law impacting much of the on-demand economy.
Last week, the California’s Labor Commissioner’s Office filed lawsuits against Uber and Lyft for allegedly committing wage theft by misclassifying their on-demand workers as independent contractors instead of employees. It is not uncommon for corporations to strategically misclassify their workers for the corporations own economic protection.
The companies will have 10 days before the order takes effect to allow for an appeal, according to a copy of the ruling from San Francisco Superior Court judge Ethan Schulman. Uber and Lyft currently treat their drivers as independent contractors.
The mounting legal pressure to reclassify their workers in the state comes at an uncertain time for both companies. Uber (UBER) and Lyft (LYFT) continue to grapple with the pandemic, which significantly cut demand for their core ride-hailing businesses. Both companies have undergone layoffs and have long histories of steep losses.
According to the court ruling, “now, when Defendant’s ridership is at an all-time low, may be the best time (or the least worst time) for Defendants to change their business practices to conform to California law without causing widespread adverse effects on their drivers.”
If you or a loved one has been injured in a ride-sharing car crash contact The Matassini Law Firm at www.matassinilaw.com.
Our experienced team of Tampa Bay personal injury and auto accident lawyers will help you with your potential claim. We have a proven track record against ride-sharing companies and have recovered over $1,000,000.00 in damages for our clients.