Lyft and Gig Companies Are Violating ‘Rule of Law,’ Judge Says

  • At hearing about sick pay, a foreshadowing of a bigger fight
  • Judge articulates California law’s threat to business models
Photographer: Gabby Jones/Bloomberg
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A federal judge issued a sharp warning to Lyft Inc. -- and other gig-economy companies that operate in California -- that refusing to treat drivers like employees is “really disregarding the rule of law.”

During a hearing over a demand by drivers for sick pay during the coronavirus outbreak, U.S. District Judge Vince Chhabria said Thursday the refusal to reclassify drivers from independent contractors to employees violates a new California law, Assembly Bill 5, aimed at making it easier for workers to qualify for an array of workplace benefits from health care to overtime.