Drivers sue Uber for back pay, accelerating fight over California gig economy law
A group of drivers filed a class-action lawsuit against Uber on Wednesday seeking retroactive pay, benefits and overtime.
The drivers are suing for the pay and benefits back to April 2018, when the California Supreme Court issued its Dynamex ruling setting new rules for when companies must provide employment benefits to workers.
The suit, filed in U.S. District Court for the Northern District of California, argues the drivers were improperly classified as contractors and were entitled to benefits they would have received as employees.
Gov. Gavin Newsom signed legislation in September codifying the Supreme Court’s ruling into law with Assembly Bill 5. The bill creates a three-factor “ABC” test for the contractor-employee distinction.
Uber didn’t immediately reply to a request for comment. The company has said it plans to make no changes to comply with the law, maintaining it correctly classifies its drivers as independent contractors.
Two other groups of workers truck drivers and freelance journalists, have sued to challenge the law, arguing that it will hurt their ability to earn a living.
Gig economy powerhouses Uber, Lyft and DoorDash aslo are floating a ballot measure that would let them continue classifying their drivers as independent contractors while providing them some new rights.
“Ride-hail drivers can’t afford to wait years for Uber to pursue through every court in the state its unfounded and now illegal argument that its drivers don’t meet the ABC test,” said Ronald Zambrano, one of the attorneys with firm West Coast Employment Lawyers representing the drivers. “These drivers have devoted their efforts to making Uber the powerhouse it is today. If Uber won’t treat its drivers the way they deserve, then the court needs to step in to enforce the law.”
Three dozen drivers are named in the suit, representing other “current and former employees” of Uber. The suit estimates the class includes 50,000 to 75,000 drivers who opted out of arbitration clauses in their contracts.
The lawsuit contends that as employees, the drivers should have been entitled not only to minimum wage and overtime but mileage reimbursement, cell phone usage and other reimbursement.
More lawsuits are expected as workers learn about the rights granted them under AB 5, which takes effect Jan. 1.
Assemblywoman Lorena Gonzalez, D-San Diego, who championed AB 5, has urged city attorneys to file lawsuits over misclassifeid employees. The San Diego City Attorney’s Office has filed a lawsuit against grocery delivery service Instacart misclassifies its workers as contractors.
This story was originally published December 18, 2019 at 3:11 PM with the headline "Drivers sue Uber for back pay, accelerating fight over California gig economy law."