Uber and Lyft witness a new lawsuit from CA Labor Commissioner

Uber and Lyft witness a new lawsuit from CA Labor Commissioner

The Workplace Of The California Labor Commissioner has been asserting salary bulgary to both Uber and Lyft, leaving them facing a lot of charges altogether.

The cases describe that both the companies have been legitimately classifying their drivers as self-employed and expect to implement the job rehearsals set out by AB 5. 

“The Uber and Lyft plan of action lays on the misclassification of drivers as self-employed entities,” California Labor Commissioner Lilia García-Brower said in an announcement. 

“This leaves labourers without insurances, for example, paid wiped out leave and repayment of drivers’ costs, just as additional time and least wages.” 

The prime objective of this process is to attain justice for these drivers and attain the money that they deserve from their hard work.

Because of COVID-19, Uber had Lyft both have been witnessing a fall in their business and classifying their drivers as self-employed entities give them the privilege to not be accountable to pay a minimum wage or salary to them

Nor is the company responsible for the payment of any kinds of losses faced by the government during the lockdown period.

This leaves labourers without insurance, for example, paid wiped out leave and repayment of drivers’ costs, just as additional time and least wages, the company mentioned.

“For quite a long time Uber and Lyft have been taking wages and abusing each lawful proviso they can to abstain from paying drivers what they merit,” Transport Workers Union President John Samuelsen said in an announcement. 

“It was despicable previously and it is considerably more dishonourable now, during the centre of a pandemic, that we have permitted rich organizations to pull off this. This claim is a basic piece of considering these organizations responsible and ensuring drivers’ privileges.” 

These accusations came in the pictures sometime before both these California based companies decided to have a poll on Prop 22 about how the drivers are separate identities and not the full employees. 

The polling will confine the companies to at least pay a minimum wage of 30 cents per mile, and in case of any kind of an emergency, 120% of the minimum wage has to be paid to the drivers.

Along with this, the company is also supposed to take care of the health expenses by providing health insurance to the drivers, along with security to help out in any case of a medical or financial emergency.

Both Uber and Lyft recently won a case of minimum salary delivery to the drivers, after facing a huge downfall due to the coronavirus.

The state Labor Commissioner’s Office reported on Wednesday (Aug. 5) that it had noted separate claims against both Uber and Lyft for not following or breaching the state law.

“The Uber and Lyft plan of action lays on the misclassification of drivers as self-employed entities,” said California Labor Commissioner Lilia García-Brower in a public statement. 

This misclassification has led all the drivers in deep shock, due to lack of financial security, which was availed by them due to the minimum wage system.

Post the claim, over 5000 drivers have received their compensation by Uber.

Presently, there are over 200,000 employees altogether in both the companies, the process of compensating each one of them can lead to company spending millions.

The two firms fought against the accusations claiming that their drivers are indeed self-employed since the company is an innovation organization.

Closure

Uber and Lyft are two leading On-Demand Applications, constantly marking their inevitable presence in the market and enhancing the experiences of their customers. Thus, when you develop an on-demand application, it is extremely important to make sure the app serves the purpose and at the same time serves the expectations of the customers. 

Our team will ensure both the quality of the application and the market strategies to succeed in the market.

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