In early 2020, thousands of drivers from Uber and Lyft took action against the ride-hailing companies, claiming they were misclassified as independent contractors. This misclassification, they argued, cost them over $1.3 billion in wages and expenses. Now, as settlement talks begin between the state of California and these companies, drivers are urging the attorney general and labor commissioner to consider their demands.
The advocacy group Rideshare Drivers United estimates that more than 250,000 drivers who worked for these companies between 2016 and 2020 could be eligible for a potential settlement. To make their voices heard, many drivers rallied outside Los Angeles City Hall, as well as in San Diego and San Francisco. Dressed in neon green shirts, they called for a settlement that would recover lost wages and ensure better pay and protections in the future. Signs at the rally displayed messages such as “Uber cheats” and “My Boss Lyfted My Money.”
Nicole Moore, the president of Rideshare Drivers United, emphasized the importance of reclaiming the money they believe was taken from them. She mentioned that a fair settlement could lead to a new pay structure, similar to one used in New York City, where drivers would earn at least $1.75 per mile and 60 cents per minute.
The urgency of the situation is heightened as negotiations are set to take place soon. A mediation session with Uber is scheduled for Monday, followed by a session with Lyft on April 8. Uber’s spokesperson expressed hope for a resolution, citing that California voters approved a law in 2020 allowing drivers to work as independent contractors, which they argue reflects the preferences of most drivers.
The drivers’ claims include being denied overtime, meal and rest breaks, and mileage reimbursements. California authorities have also taken legal action against Uber and Lyft, accusing them of avoiding payroll taxes and not adhering to labor laws.
Despite claims of declining pay and working conditions from drivers, Uber and Lyft maintain that they have invested significantly in benefits for drivers since the passage of Proposition 22. This measure, approved by voters in November 2020, allows these companies to classify drivers as independent contractors, thus exempting them from certain labor protections.
The ongoing discussions and protests highlight the challenges faced by gig workers in California, who continue to fight for fair treatment and compensation in an industry that has rapidly evolved over the years. As the negotiations unfold, drivers remain hopeful for a resolution that addresses their concerns and provides them with the wages and protections they deserve.