Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Lyft violates Washington DC sick day law during pandemic, lawsuit claims

Published 29/05/2020, 20:38
Updated 29/05/2020, 20:40
© Reuters. The Lyft  logo is seen on a parked Lyft Scooter in Washington

By Jonathan Stempel

NEW YORK (Reuters) - Lyft Inc (O:LYFT) was sued on Friday by a former driver who accused the ride-sharing company of failing to provide required paid sick leave to drivers in Washington, D.C., a policy she said could fuel the spread of the coronavirus.

Cassandra Osvatics, of Bowie, Maryland, accused Lyft of subjecting current and former drivers to a "Hobbesian choice" between having to risk their livelihoods by staying home when sick, or "risk their lives (and the lives of their passengers)" by working through their illnesses.

Underlying the proposed class action is a belief that Lyft drivers qualify as employees, entitling them in the nation's capital to about seven paid sick days annually based on 2,000 hours worked.

Lyft and larger rival Uber Technologies Inc (N:UBER) have long contended their drivers are independent contractors, and therefore not owed benefits available to employees.

The lawsuit seeks unspecified damages.

In a statement, San Francisco-based Lyft said it is financially supporting drivers who contract the COVID-19 disease, and helping drivers obtain federal relief including paid sick leave.

"Forced reclassification would jeopardize access to thousands of dollars in federal funds at the worst possible time," it said.

Christopher McNerney, a lawyer for Osvatics, said experts believe paid sick leave reduces the spread of illnesses, including when drivers and passengers carry them home.

"This is a national issue, because ride-share companies are not providing sick leave anywhere," he said. "You want drivers to stay home when they're sick, so when you hop in a Lyft car you won't get sick."

Many ride-sharing employment disputes end up in arbitration, but McNerney said they belong in court because drivers engage in interstate commerce by ferrying passengers across state lines.

In January 2019, the U.S. Supreme Court said a federal arbitration law did not require transportation workers, including independent contractors, engaged in interstate commerce to arbitrate their claims.

© Reuters. The Lyft  logo is seen on a parked Lyft Scooter in Washington

The case is Osvatics v Lyft Inc, U.S. District Court, District of Columbia, No. 20-01426.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.