California Sues Uber, Lyft Saying They Misclassified Drivers as Independent Contractors

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California Sues Uber, Lyft Saying They Misclassified Drivers as Independent Contractors
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California is suing Uber and Lyft for allegedly misclassifying their drivers as independent contractors instead of employees

California sued Uber Technologies Inc. and Lyft Inc. for allegedly misclassifying their drivers as independent contractors instead of employees, a move that intensifies a battle between the ride-hailing giants and their home state.

California, which is suing the companies under authority granted by a new state law and under the California Competition Law, said the decision to classify drivers as contractors has deprived them of rights such as paid sick leave and unemployment insurance.

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