Lyft, which is used by millions of users in more than 350 cities throughout the world, has been fighting legislation that could change the classification of the thousands of drivers using the Lyft platform for “gig work”. Now the company has also been named in a class-action lawsuit filed in New Jersey.
Class-Action Lawsuit Alleges Lyft Fails To Pay Minimum Wage
This latest legal complaint against the ride-sharing company is filed in the U.S. District Court in New Jersey. The lawsuit claims that the company has intentionally misclassified all employees in order to avoid paying minimum wage and overtime.
Drivers have provided examples of how badly they are underpaid in the claim. For example, one driver reported that in 2017 he completed a total of 92 trips that caused him to travel 763 miles. For those trips, he was paid a total of $1,068. However, these trips frequently took him from New Jersey to New York City. The gas, maintenance, and tolls he had to pay as a result cost nearly $400, which meant his base pay was only $660. He alleges that this amount does not result in minimum wage pay.
The lawsuit also alleges that since so many drivers are crossing state lines, their work is the equivalent of interstate commerce and as a result, makes the arbitration clause in the Lyft Driver Agreement unenforceable.
Uber Slammed With $650 Million Bill For Back Taxes In New Jersey
Lyft isn’t the only ride-sharing company to face legal action. Recently it was announced that Uber has been hit with a bill from the New Jersey Department of Labor and Workforce Development for $650 million dollars. The bill is broken down into $523 million for past-due taxes over four years and $119 for interest and penalties.
The taxes the state claims haven’t been paid? Employment taxes which are supposedly owed because the company allegedly misclassified workers as contractors.
How Much Are Lyft And Uber Drivers Owed?
If the legislation and current litigation are successful, it is likely that these ride-sharing companies will owe millions in unpaid wages and unpaid overtime.
Companies Frequently Misclassify Employees To Avoid Paying Fair Wages
Uber and Lyft are not the first companies to misclassify employees in order to avoid paying overtime pay. Each year, thousands of lawsuits are filed alleging that overtime pay is owed to employees.
Additional tactics used to avoid paying fair wages include:
- Not paying for “off the clock” work that is performed
- Paying overtime at an incorrect rate
- Illegal paycheck deductions
- Tip stealing
When an employer uses these tactics to avoid paying correct wages, their employees have the right to fight for the pay they are owed through legal action.
How Do I Know If I Am Owed Unpaid Overtime?
If you suspect that you aren’t being paid the correct amount, contact the experienced unpaid wages lawyers at Wage Advocate. An attorney will review your case and inform you of any legal options that you have.
The legal team at Wage Advocates has helped thousands of workers recover their unpaid wages. We understand how frustrating it is to work hard and not be paid for that work, which is why we’ve chosen to fight aggressively for workers.
Wage Advocates offers free consultations – contact us now to get started.