The Fight Over California’s Gig Economy Law Escalates: Drivers Sue Uber for Back Pay

A group of Uber drivers recently filed a class-action lawsuit. The lawsuit filed against Uber at the end of 2019 seeks retroactive pay, benefits, and overtime for Uber drivers. Pay, benefits, and overtime would be retroactive to April 2018, the time at which the Dynamex ruling was issued by the California Supreme Court that set new standards for when companies are expected to provide benefits to workers.

Uber Drivers Alleged Violations of Labor Law:

The lawsuit was filed in the U.S. District Court for the Northern District of California. In the suit, plaintiffs argue that Uber improperly classifies drivers as independent contractors instead of employees with access to employee benefits and employee protections. The legislation was signed by Gov. Gavin Newsom in September 2019 and codified the Supreme Court ruling into law. Assembly Bill 5 creates an ABC test for contractor-employee distinction based on three factors.

Uber Claims Their Practices Do Not Violate Labor Law:

When asked for a comment on the suit, Uber did not immediately respond, but later stated that they do not plan to make changes to their practices to comply with the law because they maintain their driver classifications are correct. Together with other gig economy powerhouses (Lyft, Doordash, etc.) Uber is also floating a ballot measure that could allow them to continue the practice of classifying drivers as independent contractors.

The suit names three dozen Uber drivers as representatives for current and former Uber employees. Class size is an estimated 50,000 to 75,000 drivers that opted out of arbitration clauses. The plaintiffs claim that drivers should be classified as employees and be eligible for minimum wage, overtime pay, mileage reimbursement, cell phone usage, and additional reimbursement for expenses.

AB 5 Increases Misclassification Lawsuits:

With AB 5 taking effect as of January 1, 2020, more lawsuits are expected throughout the year as workers learn about their newly granted rights. Assemblywoman Lorena Gonzalez, D-San Diego, championed AB 5 and also encouraged California attorneys to file lawsuits over misclassified employees.

In response to the drivers’ fight against the gig economy’s practice of classifying them as independent contractors, two other groups have sued in a challenge to the legal claims insisting that it would dramatically decrease their ability to earn a living.

If you need to talk to someone about misclassification or if you need to file a misclassification lawsuit, get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.