Uber, Lyft subpoenaed on driver wages
San Francisco city attorney is looking into issue of worker misclassification
After a California Supreme Court decision last month that could drastically affect the gig economy, San Francisco City Attorney Dennis Herrera has issued subpoenas to Uber and Lyft.
Herrera wants to know whether the ride-sharing companies are classifying their drivers as employees or contractors, and is asking for documentation about driver pay, benefits and more. A key part of what he’s seeking is “proof that any driver classified as an independent contractor meets all three criteria set by the California Supreme Court,” according to the subpoena issued Tuesday.
The state’s high court in its ruling in April adopted the “ABC” standard: A worker can be considered an independent contractor only when a company can show the worker controls his or her work; that the worker’s duties go beyond what the business normally does; and when the worker “is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.”
“We don’t know whether these ride-hailing companies are breaking the law until they provide the information we seek in these subpoenas,” Herrera said in a statement Tuesday. “We are going to ensure that these companies comply with the Supreme Court’s ruling and with San Francisco’s laws.”
Herrera also issued a subpoena to Rasier, an Uber affiliate.
“This is a proactive way to get to the question of misclassification since with individual and class actions there is always the issue of settlements
that do not resolve the actual question, as has been the case with both Uber and Lyft,” University of San Diego law professor Orly Lobel, a labor law specialist, said Wednesday. Amid the rise of the gig economy, Lobel has suggested reforming labor law protections.
The San Franciscobased ride-hailing companies have long faced the employee-vs.-contractor question. The California Supreme Court’s answer could upend the business models of their industry — the “gig economy” — which depends on low labor costs. Uber and Lyft, which make mobile apps that are used to hail rides, tout their drivers’ flexibility to make their own schedules when they defend their classification of drivers as contractors.
When reached for comment Wednesday, an Uber spokesman declined to comment. Lyft has not yet returned a request for comment.
Herrera has been investigating Uber and Lyft for about a year. Last June, he subpoenaed them for information as he investigates issues related to discrimination, safety and disability access. According to Herrera’s press release this week, Lyft has provided the information he sought, while Uber has appealed a court order to comply with his requests.