Uber and Lyft are set to face trial on Monday in a US lawsuit by Massachusetts’ attorney general alleging the ride-share companies misclassified their drivers as independent contractors rather than more costly employees.
Uber (UBER) and Lyft (LYFT) argue that they properly classified the drivers, saying they are not transportation companies that employ drivers but technology companies whose apps facilitate connections between drivers and potential riders.
The lawsuit going to trial was filed in 2020 by Campbell’s predecessor, Maura Healey, now the state’s Democratic governor.
Should the state prevail, it has said the companies could face large penalties for not properly classifying their drivers.
By not classifying their Massachusetts drivers as employees, Uber and Lyft avoided paying $266.4 million into workers’ compensation, unemployment insurance and paid family medical leave over 10 years, according to a report by the state auditor.
Persons:
Andrea Joy Campbell, Uber, Peter Krupp, Rohit Singla, Maura Healey, Lyft
Organizations:
Democratic, Studies, Massachusetts, Campbell’s
Locations:
Massachusetts, Boston, Suffolk