Massachusetts sues Uber, Lyft over driver status as contractors

Massachusetts on Tuesday adopted California in suing Uber Technologies Inc. and Lyft Inc. in excess

Massachusetts on Tuesday adopted California in suing Uber Technologies Inc. and Lyft Inc. in excess of allegedly misclassifying their motorists as unbiased contractors alternatively of staff entitled to intensive benefits.

The grievance filed in Suffolk Outstanding Courtroom claims Uber and Lyft violate state minimum amount wage, hour and sick time legislation.

“Uber and Lyft have constructed their billion-dollar corporations though denying their motorists standard staff protections and benefits for several years,” Massachusetts Attorney Normal Maura Healey stated in a assertion.

Uber and Lyft argue that the large the greater part of their motorists delight in the adaptability that arrives with on-demand function, and a the latest examination by Cornell College of Seattle driver facts equipped by the firms confirmed that some seventy five % of motorists function less than twenty hrs.

Massachusetts’ lawsuit arrives roughly two months right after California filed a equivalent grievance, accusing Uber and Lyft of evading place of work protections and withholding employee benefits underneath a new state regulation intended to shield personnel in the so-termed gig overall economy.

California has questioned a court docket to compel the firms to comply with the regulation.

Massachusetts is also looking for a court docket get declaring that experience-hail motorists are staff. But not like in California, the Massachusetts labor legislation the firms are alleged to violate went into influence in 2004.

“This (coronavirus) crisis has seriously revealed that we have to have to do almost everything feasible to guidance these personnel, primarily people providing an important service,” Healey stated at a information conference when questioned why her office environment waited right up until now to file the lawsuit.

Uber in a assertion stated it would contest the action in court docket and stated it stood ready with Massachusetts to modernize legislation that make it possible for for new employee protections though maintaining adaptability.

Lyft in a assertion stated the lawsuit threatens to get rid of function for more than 50,000 people in Massachusetts as motorists would not quickly be employed as staff.