Uber and Lyft are certainly part of the American transportation landscape. In just a few short years these two companies have captured a significant portion of the public’s short-trip transportation business. However, not everyone is happy about the way that these two companies operate. This is especially true when it comes to the area of employee compensation.
San Francisco City Attorney Dennis Herrera has issued subpoenas against both Uber and Lyft. He wants these two companies to turn over their records regarding how much their drivers are paid and what benefits the drivers receive.
The Supreme Court of the State of California has issued a ruling that increases the difficulty for a company to claim that its workers are independent contractors and not actual employees of the company. Those who are considered to be actual employees of a company are entitled to minimum rates of pay. They are also entitled to certain benefits if they work full-time, and the company has over a certain number of employees.
Mr. Herrera wants to know how long drivers are working, and if they are making at least minimum wage. He wants the drivers to be afforded access to benefits if they are working a significant number of hours.
Both Uber and Lyft are fighting the efforts of some states and municipalities to have their drivers considered employees instead of independent contractors. If the current designation of drivers changes, analysts believe that the business costs for Uber and Lyft would increase by approximately 30 percent.
This is not the first action that Mr. Herrera has taken against Uber and Lyft. In 2017, Mr. Herrera subpoenaed records regarding the companies’ traffic impact and how they respond to the needs of those with disabilities. So far, Lyft has provided the information, but Uber has not.