California Court allows Uber drivers class action lawsuit for employment rights pre-Prop 22
A California district court ruled Uber drivers in California have the right to proceed with their class action lawsuit over employment benefits they allege the company owes them. Around 4,800 drivers collectively sued Uber for not paying them benefits guaranteed to all employees under the state law, including minimum wage, overtime, and paid sick leave. The drivers claim that the company misclassified them as contractors prior to Proposition 22 having entered into force.
The lawsuit was filed after Uber refused to reclassify the plaintiffs as employees according to California’s passage of Assembly Bill 5 (AB-5), which aims to provide labour protections to a larger group of workers in the state. Uber and Lyft were immediately sued after the enactment of AB-5 for not complying with it. However, while the lawsuit was still pending, Proposition 22 was passed to exempt ride-hailing and food delivering companies from complying with AB-5. It is clear now after the district court’s ruling that drivers who had sued Uber before the passage of Proposition22 are still entitled to claim their employment rights in California.