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Lawsuit Alleges that Uber & Lyft Incorrectly Classified Drivers as Independent Contractors

Driver at the airport picking up passenger

Rideshare companies Uber Technologies, Inc. (Uber) and Lyft, Inc.(Lyft) are under fire as allegations of worker misclassification continue to rise. Thousands of drivers for both companies claim they have been misclassified as independent contractors and thus denied benefits and protections, such as minimum wage, overtime pay, health care, reimbursement for working expenses, and more. Currently, our attorneys are pursuing arbitrations  on behalf of Massachusetts, New York, New Jersey, Connecticut, Washington, the District of Columbia, Illinois, or Texas drivers who believe Uber or Lyft misclassified them as independent contractors. 

If you are a current or former driver for one or more of the rideshare apps and believe you were misclassified, do not hesitate to contact a Morgan & Morgan worker misclassification attorney today. Working with an attorney can help you understand what you may be entitled to recover after Uber or Lyft has misclassified you as an independent contractor.


Can You Define What Worker Misclassification Is?

In order to ensure a business is in compliance with the Fair Labor Standards Act (FLSA) and the U.S. Department of Labor, companies must classify their workers as employees or independent contractors depending on their roles and the involvement of the company as the workers perform their duties. Just like the difference in roles, there are also several differences between workers who are classified as employees and those classified as self-employed workers or independent contractors when it comes to their benefits. 

When classified as an independent contractor, you'll typically work under short-term, contract-based jobs versus a company employee who is given a consistent work schedule, guaranteed a regular wage, and is entitled to benefits. This distinction is essential for working individuals to be aware of their entitlements and rights in the workplace.

Under the FLSA, employers are required to pay their workers at least the federal minimum wage. Employers must also abide by current overtime rules, which state that they must pay their employees "time-and-a-half" wages or 1.5 times the employee's regular hourly wage for all of the hours worked over the national overtime limit of 40 hours per week.

However, many companies have recently opted to abuse employee classification by misclassifying their employees as contractors to save money. When companies choose to misclassify their workers, they avoid paying minimum wage and enrolling workers in a health benefits plan. 

Are you a Lyft or Uber driver who believes you have been misclassified as an independent contractor rather than an employee? If so, contact the misclassification attorneys at Morgan & Morgan today in order to receive a free, no-obigation case evaluation.


In What States Are Uber & Lyft Drivers Affected by Worker Misclassification?

If you are a Lyft driver in the states of Massachusetts, New York, New Jersey, Connecticut, Washington, the District of Columbia, Illinois, or Texas and believe you have been misclassified, you may be eligible to file a claim. To learn more about your worker misclassification case, you can connect with a Morgan & Morgan attorney today to receive a free case evaluation

What Lawsuits/Arbitrations Have Been Filed Against Uber & Lyft for Worker Misclassification?

The fight for proper worker classification on the rideshare app has been prevalent over the years. Some of the most noted legal actions include the following:

  • In 2016, the O'Connor v. Uber Technologies, Inc. lawsuit, in which current and former Uber drivers alleged that Uber violated various federal and state statutes by misclassifying its drivers as independent contractors rather than employees. 
  • In 2017, Lyft settled a $27-million class action lawsuit brought by drivers who sought to be classified as employees. 
  • In July 2022, Uber settled a class-action lawsuit with California drivers who claimed they were misclassified as independent contractors rather than employees, agreeing to pay $8.4 million.
  • In 2022, Uber Technologies Inc. and Rasier LLC submitted a $100 million payment to the New Jersey Department of Labor and Workforce Development's Unemployment Trust Fund after an audit found the rideshare companies improperly classified hundreds of thousands of its drivers as independent contractors. 
  •  In 2023, Uber and Lyft settled a wage theft lawsuit with the State of New York, where an investigation found the rideshare companies withheld pay from their drivers and prevented them from receiving benefits under New York Labor laws. Uber and Lyft paid a combined settlement of $328 million to its current and former drivers. 

Legal actions, including arbitrations,  are being filed against Uber and Lyft regarding worker misclassification as we speak. If you or a loved one are an Uber or Lyft driver in Massachusetts, New York, New Jersey, Connecticut, Washington, the District of Columbia, Illinois, or Texas and believe you were misclassified by the rideshare companies, do not wait to contact a Morgan & Morgan attorney today. 

What Are Uber & Lyft Drivers Eligible To Recover From a Worker Misclassification Claim?

If you are a driver for Uber or Lyft, under a worker misclassification claim, you may be eligible to recover compensation for any lost wages and benefits you would have received throughout your employment with the rideshare company. Lost wages may include, but are not limited to, the difference in wages you received as a misclassified worker versus the wages you should have received under the proper employee classification and overtime pay. Lost benefits may include Social Security or Medicare benefits, paid time off, and retirement plans. 

How Can a Morgan & Morgan Attorney Help Drivers Who Have Been Misclassified by Uber & Lyft?

Speaking to a Morgan & Morgan attorney can significantly improve your odds of recovering the compensation you deserve after rideshare companies like Uber and Lyft have misclassified you. Over the last 35 years, our attorneys have handled thousands of worker misclassification claims, which makes us uniquely qualified to take on your case. When you decide to work with one of our attorneys, you can rest assured they will get right to work on your case. 

Your attorney and legal team will assess your case, gather the necessary documents or evidence, and work with industry experts to help further validate your misclassification claims against the rideshare companies. Your attorney will work with you to help you better understand your rights as an employee and what your next steps are in order to recover the proper benefits you are legally entitled to.

If you are an Uber or Lyft driver in the states of Massachusetts, New York, New Jersey, Connecticut, Washington, the District of Columbia, Illinois, or Texas and believe you were misclassified, we may be able to help you get the justice you deserve. For more information regarding your worker misclassification claim, contact a Morgan & Morgan attorney today by completing our free, no-obligation case evaluation form.