California Uber and Lyft drivers push for settlement in wage theft claims

The Guardian

26-03-2025

Ride-share drivers in Los Angeles, San Francisco and San Diego held demonstrations in front of city hall buildings on Wednesday as California state attorney General Rob Bonta, city attorneys and attorneys representing ride-share drivers continue negotiations next week with Uber and Lyft to settle thousands of claims of wage theft for drivers.
At least 250,000 individual ride-share drivers in California who drove for the apps between 2016 and 2020 are estimated to be eligible for the settlement for wage theft claims of tens of billions of dollars, according to Rideshare Drivers United in California.
In 2020, more than 5,000 drivers filed wage and hour claims with the California Labor Commission office against Uber and Lyft, alleging they were misclassified as independent contractors prior to the passage of Prop 22, a ballot initiative that created an exemption for gig workers to be classified as independent contractors.
Daniel Russell worked full-time as a ride-share driver for Uber and Lyft between 2016 and 2020 in San Bernardino, California, and now works as a teacher and drives part-time. He estimates being owed about $300,000 from both companies in unpaid wages, including unpaid overtime, meal and rest breaks, and mileage reimbursement.
'The more I drove, it seemed, the more I got manipulated,' he said. 'One of the big ways you're losing is the depreciation on your car.'
During that time, Russell said he worked 70- to 80-hour weeks, often chasing bonuses or trying to make up for the unreliable and inconsistent pay, and put 270,000 miles (435,000km) on a single vehicle in just over three years before it broke down, just as he finished paying it off.
'I get very frustrated when I hear ride-share companies claim it's a part-time job, it's not meant to be full time. No. They created a market and business that is relying on full-time labor, so they have to take accountability for that full-time labor,' he added. 'They built this massive company on the back of our labor. They were undercutting cab companies. They took losses for years to make this happen. Hopefully they will be held accountable for the law they weren't following before they wrote their own law, Prop 22. Drivers are entitled to that money.'
Ben Valdez, an Uber driver in Los Angeles since 2015 who was working 20 to 25 hours a week during the four-year period, said he's owed nearly $200,000 from his wage theft claim he filed against the company.
'The companies need to pay the drivers what they what they're owed. They took advantage of a lot of drivers during the period of time,' said Valdez. 'It's not just about the earnings. There should be compensation for time based on the hours you actually work. The state of California needs to know that it's not just about the money owed. It's about changing the way that these companies operate.'
Ibrahim Diallo, a ride-share driver based in San Francisco, claimed his pay has declined over the years during his time working for the apps.
Studies, including those from the University of California, Berkeley, and the National Equity Atlas, have shown that pay for ride-share and delivery apps have remained significantly low, often below hourly minimum wage rates with expenses, taxes, and active working time taken into account, including after Prop 22 was enacted in California. Uber and Lyft have disputed low hourly average wages for drivers.
'I have struggled recently against homelessness while trying to still work as a driver,' Diallo said to Rideshare Drivers United. 'After expenses, many of us are earning less than minimum wage. This is inhumane. We need accountability and for the state to force these companies to make better standards for work.'
A spokesperson for Uber said in an email 'drivers come to Uber precisely because of the unique flexibility that it provides. Prop 22 safeguarded their choice to work independently, while ensuring important new protections. The voters of California have spoken – overwhelmingly – and we look forward to putting these years-old matters behind us.'
Lyft did not respond to multiple requests for comment.