In early 2020, thousands of drivers led by the Southern California Advocacy Group’s ride driver wing filed claims against Uber and Lyft to the state. They claim that the companies illegally regard them as independent contractors and owes them more than $1.3 billion in wages, expenses and losses.
Now, the state will begin settlement negotiations with the cycling giant. The driver wants the California Attorney General and Labor Commissioner to consider their requests in closed-door talks.
According to Rideshare Drivers United, those who actively drive and Lyft between 2016 and 2020 may qualify for a potential settlement, which could involve more than 250,000 drivers.
To urge their demands, drivers plan to rally Wednesday morning outside Los Angeles City Hall and outside San Diego and San Francisco, asking the state to push for a settlement to cover all lost wages and losses, or to establish additional wage boosts and drivers’ workplace protection.
“Our first priority is to get back the stolen money,” said Nicole Moore, president of the ride-hailing driver wing, referring to the wage theft claim. “The only way they should trade is to get fair standards.”
Moore said the settlement could help build a fee card where the driver pays at least $1.75 per mile and 60 cents per minute, similar to the model adopted in New York City.
The planned protests are ahead of a mediation meeting with Uber on Monday. The meeting with Lyft is scheduled to take place on April 8.
Both companies did not immediately respond to requests for comment.
The negotiations involved not only California Labor Commissioners, with whom the driver filed a wage claim, but also the state attorney general. In Los Angeles, San Diego and San Francisco city lawyers joined, they sued Uber and Lyft forcing the companies to immediately classify drivers as employees and accused them of evading local and state payroll taxes.
Drivers who were misclassified as independent contractors during the target period were denied overtime, meals and rest and miles reimbursement, the lawsuit alleges.
These claims and several other private lawsuits Being merged Coordinated actions are carried out in the San Francisco Superior Court so that a single judge can decide all issues in one place.
Uber and Lyft accused California authorities of wasting time and resources on wage claims, believing that most California drivers would like to be independent contractors rather than employees, and that law enforcement in the state would kill the industry’s growth.
Uber and Lyft launched ultimate failed attempts to prevent the state from enforcing wage and hourly laws and believed their arbitration agreement with individual drivers prevented the state from doing so.
In November 2020, voters approved a voting plan backed by Uber, Lyft, Doordash and other gig economy companies22. The measure exempts companies from state labor laws, allowing them to classify drivers’ rides and delivery services as independent contractors rather than employees.
The voting initiative is Last year, the state Supreme Court insisted.
Uber and Lyft drivers said their working conditions and pay have declined in recent years.
Yasha Timenovich, 48, started driving in 2014 and said he works 12 hours a week, but is still working hard to make ends meet.
Hollywood residents say drivers’ share is getting smaller due to “absurd” and “inconsistent” fees when rides and delivery companies raise customer prices.
Earlier this week, passengers paid $54.99 for a ride, Timenovich earned just $24.15 after the company deducted $29.34 of “commercial vehicle insurance and other expenses”, $0.10 $0.10 $0.10, “tax and government fees, $1.40 for Lyft revenue is $1.40, according to the company’s revenue.
“How do they prove this?” he said. “What am I left?”
Karen Vandenberg, 64, of the San Diego-based Uber driver, said she might have been able to make $250 a day before she minus gasoline and other expenses. But she has to do a lot today and she may have to work for a few days. The car problem forced her to leave for several months when she had to replace the car’s gearbox twice in 2023, spending a total of about $10,000.
“My car has been in a long time,” Van Denberg said. “I don’t have the money to pay for another gearbox, so it sits there. It’s frustrating – not only that, but the constant oil changes, brake changes, tire changes and gas.”
