Massachusetts judge allows state lawsuit over Uber driver status, Lyft to proceed

On Thursday, a Massachusetts judge denied an offer to close a lawsuit by the state attorney general that questions drivers’ and Uber’s classification of Uber as independent contractors rather than employees entitled to sick leave and other expensive benefits.

Suffolk County Superior Court Judge Kenneth Salinger did not decide whether drivers were classified incorrectly, but his decision allows Massachusetts Attorney General Maura Healey to pursue her claims against Uber Technologies Inc and Lyft Inc on court.

GET FOX BUSINESS ON THE MOVE BY CLICKING HERE

“(V) The allegations in the complaint suggest that Uber and Lyft misclassify their drivers and, as a result, deprive some drivers of mandatory minimum wages, overtime and sick leave,” wrote Salinger in his decision.

Uber and Lyft deny that their drivers were classified incorrectly, saying that the vast majority enjoy the flexibility that comes with working on demand. The companies argue that flexibility would disappear if they were forced to reclassify drivers as employees.

UBER WILL GIVE WORKER RIGHTS TO UK DRIVERS AFTER THE COURT DEFEAT

The companies did not immediately respond to a request for comment on Thursday’s decision.

Healey in a statement called the decision “a major victory in our ongoing struggle to support and protect Uber and Lyft drivers from unfair and exploitative practices.”

Ticker Safety Last Change Change %
UBER UBER TECHNOLOGIES, INC. 53.89 +1.32 + 2.51%
LYFT LYFT INC. 63.57 +2.60 + 4.26%

The lawsuit is the latest in a row of disputes over the rights of concert workers, many of whom have few legal rights and benefits. This follows a fierce battle in California, where voters last year cemented the status of application-based worker contractors in a vote sponsored by Uber, Lyft and other giants in the economy.

CLICK HERE TO READ MORE ABOUT FOX BUSINESS

The Massachusetts lawsuit, opened in July, calls for a court order stating that hitchhikers are employed.

(Reporting by Tina Bellon in Austin and Nate Raymond in Boston; Editing by Karishma Singh)

Source