In early 2020, thousands of drivers in California took a stand against Uber and Lyft, claiming that they were wrongly classified as independent contractors. They allege the companies owe them over $1.3 billion in unpaid wages, expenses, and damages. This week, as negotiations for a settlement begin, drivers are urging state officials to consider their demands.
The advocacy group Rideshare Drivers United, which has been leading the charge, estimates that more than 250,000 drivers who worked for Uber and Lyft between 2016 and 2020 may be eligible for compensation. To push for their rights, drivers rallied outside Los Angeles City Hall, as well as in San Diego and San Francisco. They called for a settlement that would not only recover lost wages but also provide better pay and protections for drivers. Many held signs with slogans like “Uber cheats” and “My Boss Lyfted My Money.”
Nicole Moore, the president of Rideshare Drivers United, expressed that their main goal is to reclaim the money they believe was taken from them. She emphasized that any settlement should also establish fair pay standards, suggesting a model where drivers earn at least $1.75 per mile and 60 cents per minute, similar to regulations in New York City.
The protests and negotiations come ahead of mediation sessions scheduled with Uber and Lyft. Uber’s spokesperson expressed hope for a resolution, pointing out that California voters had approved a law in 2020 allowing drivers to work as independent contractors. They argue that many drivers prefer this arrangement for the flexibility it offers.
However, drivers like Yasha Timenovich and Karen Vandenberg shared their struggles, detailing how their earnings have declined while costs continue to rise. Timenovich, who drives long hours, noted that he often receives only a fraction of what passengers pay after deductions for expenses. Vandenberg described how car repairs have added financial strain, making it harder to earn a living.
The legal battles began when California’s labor commissioner and several city attorneys filed lawsuits against Uber and Lyft, accusing them of misclassifying drivers and avoiding local taxes. The lawsuits also highlighted that drivers missed out on benefits like overtime pay and meal breaks.
In November 2020, voters approved Proposition 22, which allowed these companies to classify their drivers as independent contractors. This measure was upheld by the California Supreme Court last year, further complicating the drivers’ fight for better treatment.
As negotiations proceed, the California Department of Justice has pledged to uphold the rights of workers. Drivers are hopeful that these talks will lead to meaningful changes in their pay and working conditions. For many, the outcome of these negotiations could significantly impact their livelihoods.