Uber, Lyft sued in California

California Attorney General Xavier Becerra (D) and a group of city attorneys filed a lawsuit against Uber and Lyft on Tuesday, alleging they have broken state laws by classifying their drivers as independent contractors rather than employees.

The law, known as AB 5, requires companies to classify their workers as full employees if the firm has control over how they perform tasks or if the tasks are a routine part of the company’s core business.

Company pushback: Uber and Lyft are among the gig companies operating in California that have resisted the law, which went into effect on January. Uber has claimed its core business is technology, rather than rides.

The lawsuit filed in San Francisco County Superior Court seeks to compel the ride-sharing giants to classify drivers as full employees, demanding civil penalties and restitution for drivers.

The back wages and penalties could add up to hundreds of millions of dollars.

“California has ground rules with rights and protections for workers and their employers,” Becerra said in a statement.

“We intend to make sure that Uber and Lyft play by the rules.”

Drivers classified as contractors are not guaranteed access to basic employee protections such as a guaranteed minimum wage, sick leave, unemployment insurance or the right to organize.