California to escalate legal battle with gig companies over worker classification

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California Attorney General Xavier Becerra plans to file a preliminary injunction in his classification fight with Uber and Lyft, escalating a battle with major technology companies, based on a memo sent Wednesday morning from his office

Uber, Lyft, DoorDash, Postmates and Instacart have committed more than $110 million toward passing a ballot initiative that would let their workers remain independent contractors.

The companies are looking to the electorate after they were unable to sway the Legislature, and the courts are increasingly applying pressure. San Francisco District Attorney Chesa Boudin challenged DoorDash in court last week for illegally misclassifying its delivery drivers, another volley in a growing barrage of legal challenges to gig companies in California.

Stacey Wells, a spokesperson for the industry’s ballot initiative, blasted Becerra’s latest move by characterizing it as “yet another malicious legal action against drivers that underscores exactly why we’re pursuing the ballot measure.” “It is baffling that anyone would seek to end this critical work, threatening 900,000 jobs, especially now,” she said in a statement.

Similarly, Uber previewed its likely message to voters in a statement assailing Becerra's actions. "When over 3 million Californians are without a job, our elected leaders should be focused on creating work, not trying to shut down an entire industry," the company said.

 

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