Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

California drivers sue Uber over in-app messages asking to support ballot measure

10/22/2020 | 06:58pm EST
FILE PHOTO: Leandra Montiel, 34, joins a protest by Uber and Lyft rideshare drivers against California Proposition 22 in Los Angeles

(Reuters) - California Uber Technologies Inc drivers on Thursday sued the ride-hailing company over in-app messages regarding an upcoming gig worker ballot measure that the drivers say violate a California law protecting their political rights.

The lawsuit says Uber is unlawfully pressuring drivers via the app to support the Nov. 3 company-sponsored ballot measure, known as Proposition 22, via the app.

Uber rejected those claims.

"This is an absurd lawsuit, without merit, filed solely for press attention and without regard for the facts," Uber said in a statement, adding that the vast majority of its drivers supported Prop 22.

Prop 22 would overwrite California law AB5 intended to force Uber, Lyft and other app-based companies to classify workers as employees, entitling them to benefits including minimum wage, overtime pay, health and unemployment insurance.

Uber and Lyft say such changes would force them to reduce their California driver base by more than 75% and prevent the majority of its drivers from enjoying their current flexibility and income opportunities.

Both companies have also threatened to leave the state if AB5 was enforced.

Under Prop 22, drivers would receive some benefits, including minimum pay, healthcare subsidies and accident insurance, but remain independent contractors.

Uber, Lyft, DoorDash, Instacart and Postmates have jointly spent $184 million to promote the ballot proposal and Uber has included messages in its driver app to promote it.

In-app prompts urge drivers to show their support for the ballot measure, including by asking them to submit video messages, and links to the Yes on Prop 22 campaign site.

Those prompts, in combination with Uber's threat to leave the state or reduce its driver base, leads drivers to believe that they might be punished if they do not follow the company's line, said David Lowe, the attorney who filed the lawsuit.

"This case isn't strictly speaking about Prop 22, this case is about Uber trampling the political freedom of its drivers," said Lowe, who according to California data donated $5,000 to the No on Prop 22 campaign sponsored by labor organizations.

William Gould, an employment law professor at Stanford University, said Uber's conduct showed a clear attempt at political interference that was in violation of California law.

Thursday's lawsuit is asking the court to ban Uber's in-app messaging, a request that might not be ruled on prior to Nov. 3. It also seeks fines and a declaration that Uber's conduct is unlawful.

(Reporting by Tina Bellon in New York; Editing by Sonya Hepinstall)

By Tina Bellon

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
LYFT, INC. 0.36% 39.49 Delayed Quote.-8.21%
UBER TECHNOLOGIES, INC. 2.44% 51.26 Delayed Quote.72.36%
Latest news "Economy & Forex"
04:05aEU fell short in vetting BlackRock for green banking rules, watchdog says
04:03aSwiss allocate 3,500 work permits for Britons post-Brexit
04:01aExpanded French business support to cost 1.6 billion euros per month
03:56aItaly's antitrust probes Benetton for possible abuse in franchising contracts
03:56aSouth Korean watchdog fines Facebook $6.1 million for sharing user info without consent
03:54aJapan cuts capex view, says overall conditions remain severe in November report
03:51aMalaysia reassures on supply after world's largest latex glove maker shuts factories
03:42aTullow Oil's new strategy focuses on squeezing West Africa fields
03:42aCROSSWORD CYBERSECURITY : IASME Consortium to deliver IoT Certification using Crossword Cybersecurity's Rizikon Assurance platform
03:35aEuropean debt markets unfazed as stocks hit record highs
Latest news "Economy & Forex"