California — California public agencies are mediating with Uber and Lyft to resolve extensive wage theft claims, potentially amounting to billions of dollars.
The lawsuit, filed by the state’s Justice Department and city attorneys from San Francisco, Los Angeles, and San Diego, seeks back pay and damages for drivers who operated between 2016 and 2020. This period precedes the enactment of Proposition 22, which classified app-based gig workers as independent contractors.
Rallies organized by Rideshare Drivers United across California cities have drawn attention to the ongoing legal battle. These actions coincide with court documents revealing active settlement negotiations. The core of the dispute revolves around the companies’ non-compliance with Assembly Bill 5, which would have mandated employee classification for drivers, entitling them to standard labor protections.
Rideshare Drivers United estimates owed wages to exceed $1.3 billion, with potential liabilities escalating if all eligible drivers are included. The companies have refrained from commenting on settlement talks or financial estimations.
While Uber acknowledges voter approval of Proposition 22, driver advocates argue the initiative has failed to deliver promised improvements in wages and working conditions. The outcome of these negotiations will significantly impact the classification and compensation of gig workers in California.
For individuals affected by wage theft, understanding your rights is crucial. If you believe you are entitled to compensation, we offer free consultations. Our experienced employment lawyer can assess your case and explain your legal options. Contact us today to learn more.
