"Massachusetts takes Uber, Lyft to trial over whether drivers are employees," 13 May 2024

Massachusetts' attorney general took Uber Technologies and Lyft to trial on Monday over allegations that the ride-share companies are misclassifying thousands of drivers in the state as independent contractors to avoid treating them as more costly employees.

The non-jury trial in Boston comes amid broader legal and political battles in the Democratic-led state and elsewhere nationally over the status of drivers for app-based companies whose services fuel the U.S. gig worker economy.

Studies have shown that using contractors can cost companies as much as 30% less than employees.

Assistant Attorney General... said the companies' algorithms, pricing policies and operating standards gave them a level of control over their drivers that belied any claim that they work independently.

Lawyers for the companies argued the state misunderstood their businesses, saying the main employees on their payrolls were data scientists and others who fine-tune the apps they provide that connect independent drivers with potential riders.

By not classifying their Massachusetts drivers as employees, Uber and Lyft avoided paying $266.4 million into workers' compensation, unemployment insurance and paid family medical leave over 10 years, according to a report by the state auditor.