Uber flouting California law that shields it from driver lawsuits, group claims

Lyft

20/04/2026 19:59

Lawsuit says Uber has no appeals process for terminations

Violating contractor law means drivers are employees, group says

Seeks ruling that drivers can sue Uber for wage law violations

By Daniel Wiessner

April 20 (Reuters) - Uber is not providing the benefits to California drivers that a state law requires in order to treat them as independent contractors rather than its employees, even though the company spent over $50 million pushing voters to approve it, a lawsuit filed on Monday claims.

Rideshare Drivers United, which says it represents more than 20,000 drivers in California, claims in the lawsuit in state court in San Francisco that because Uber has violated the law known as Prop 22, its drivers should be able to sue the company for misclassifying them as independent contractors under state wage law.

Prop 22 was approved by voters in 2020 and says that drivers for app-based transportation services such as Uber and Lyft are independent contractors and not employees under state law. That means drivers cannot sue those companies for violating laws that only apply to employees, such as those requiring overtime pay and reimbursements for expenses.

The industry spent more than $220 million in support of Prop 22 and its passage was a major relief to companies like Uber that have faced scores of lawsuits over their classification of drivers.

But Prop 22 only applies to drivers provided with certain benefits including a minimum wage, subsidies for health insurance and the ability to appeal terminations. The lawsuit filed on Monday says Uber has not provided any appeals process for when drivers are kicked off the app, let alone one that would satisfy basic due process requirements such as notice and an opportunity to confront and examine witnesses.

The group says Uber also flouts Prop 22 by prohibiting drivers from rejecting requests based on the customer's geographical location or the presence of a service animal, and by not providing enough information for drivers to determine whether a ride will pay enough to be worth their time.

An Uber spokesperson in a statement called the lawsuit baseless and said the company complies with Prop 22, including by providing a clear appeal process.

"We’ll fight this publicity stunt in court while continuing to strengthen drivers’ voice on the platform," the spokesperson said.

Rideshare Drivers United is represented by Shannon Liss-Riordan, a Boston-based lawyer who over the last decade has brought some of the most high-profile cases accusing Uber, Lyft and others of misclassifying drivers. She said that Prop 22 was devastating for drivers but had at least set some basic standards.

“Unfortunately, Uber is choosing to take advantage of the immense corporate benefits offered by Prop 22 while ignoring the minimal benefits and protections it offers to drivers," Liss-Riordan said in a statement.

The lawsuit seeks a declaration that Uber has violated Prop 22 and "is barred from asserting that its drivers are independent contractors." Rideshare Drivers United is seeking legal fees and costs but no monetary damages.

The case is Rideshare Drivers United v. Uber Technologies, California Superior Court, San Francisco County, number not available.

For the plaintiffs: Shannon Liss-Riordan of Lichten & Liss-Riordan

For Uber: Not available

Read more:

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(Reporting by Daniel Wiessner in Albany, New York)

((daniel.wiessner@thomsonreuters.com))