Massachusetts takes Uber and Lyft to trial

Massachusetts is taking Uber and Lyft to trial, alleging that the ride-share giants have misclassified their drivers as independent contractors rather than employees, a move that could save the companies up to 30% in costs. The non-jury trial, initiated by Massachusetts Attorney General Andrea Joy Campbell, seeks to establish that drivers should be classified as employees under state law, entitling them to benefits such as minimum wage, overtime, and sick leave. This trial marks a critical point in broader national debates over the status of gig economy workers and follows a pattern of legal challenges facing app-based services. Uber and Lyft maintain that they are technology platforms, not transportation companies, arguing that reclassifying drivers as employees would compromise their business model and potentially force them to cease operations in Massachusetts. The outcome could lead to significant operational changes for these companies in the state and substantial financial penalties for past misclassifications.

Source: CNN