Uber and Lyft were hit with a fresh lawsuit by California Attorney General Xavier Becerra and a coalition of city attorneys who allege the companies are misclassifying their workers in violation of a new state law
Under the California law, which went into effect on January 1 and is known as Assembly Bill 5 or AB-5, companies must prove workers are free from company control and perform work outside the usual course of business in order classify workers as independent contractors rather than employees.
Uber, Lyft and DoorDash have each put $30 million behind a ballot initiative, with additional support from Postmates and Instacart. If passed, it would exempt them from the new AB-5 law, but offer drivers some benefits.
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