The U.S. Supreme Court has declined to hear an appeal by Uber and Lyft in a legal case brought by the state of California regarding the classification of drivers.
The lawsuit, which started in 2020, claims that Uber and Lyft misclassified their drivers as independent contractors instead of employees. This classification denies drivers certain benefits like minimum wage, overtime pay, and reimbursements.
Uber and Lyft argued that drivers had agreed to resolve disputes through private arbitration rather than going to court, but California’s attorney general pursued the case on behalf of drivers.
The companies have also fought against these claims, stating that gig workers benefit from the flexibility of being contractors.
The California Supreme Court previously rejected Uber and Lyft’s appeal, and now the U.S. Supreme Court has refused to intervene.
This decision allows California to continue its lawsuit, seeking compensation for drivers who were allegedly misclassified. Similar cases have arisen in other states, with the companies facing increasing legal pressure.
Despite their legal battles, Uber and Lyft maintain that their drivers are contractors, while states like California push for stronger worker protections.
