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Arthur T Knackerbracket has found the following story:

The state of California is suing Uber and Lyft. Attorney General Xavier Becerra filed a lawsuit against the two ride-hailing companies on Tuesday alleging they've "exploited hundreds of thousands of California workers" by classifying their drivers as independent contractors rather than employees.

[...] The lawsuit alleges Uber and Lyft violated a California state law called AB 5, which aims to ensure workers have adequate labor protections by classifying them as employees. The suit was filed in San Francisco County Superior Court by the Attorney General's Office in conjunction with the city attorneys from San Francisco, Los Angeles and San Diego.

[...] Gig workers are considered essential workers, meaning they can continue to work as the virus spreads. Because they're still out there, delivering food to people in quarantine and transporting medical workers to and from hospitals, they can be more at risk of contracting COVID-19. Thousands of Uber and Lyft drivers have been infected with or exposed to the coronavirus, according to the companies, and at least five drivers have died from the disease.

An Uber spokesman said the company plans to fight the lawsuit. "At a time when California's economy is in crisis with 4 million people out of work, we need to make it easier, not harder, for people to quickly start earning," he said.

A Lyft spokesman said the company will work with state lawmakers "to bring all the benefits of California's innovation economy to as many workers as possible."

[...] The lawsuit seeks to fine the companies up to $2,500 for each violation under California law. If a court rules in favor of the state, Uber and Lyft could end up owing hundreds of millions of dollars in those civil penalties and in back wages to drivers.

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