Lyft is suing the town of San Francisco, claiming the city unfairly charged the ride-hailing company over $100 million in taxes, Bloomberg stories. The lawsuit alleges that, over the course of 5 years, San Francisco unfairly labeled cash earned by Lyft drivers as firm income.
Within the grievance, Lyft maintains that its drivers are its clients, not workers. “Accordingly, Lyft acknowledges income from rideshare as being comprised of charges paid to Lyft by drivers, not prices paid by riders to drivers,” the grievance reads.
The lawsuit is simply the newest chapter in a yearslong debate over how gig financial system apps ought to classify drivers. Final summer time, Lyft, Uber, and DoorDash notched a win after the California Supreme Court upheld Proposition 22, which permits the businesses to categorise drivers as impartial contractors, which means the businesses wouldn’t have to offer drivers with full worker advantages.
Lyft,prop 22,rideshare,San Francisco
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