[New York Time] Massachusetts Sues Uber and Lyft Over the Status of Drivers. The suit, made public on Tuesday, makes Massachusetts the second state after California to challenge how Uber and Lyft classify drivers and could deal another blow to their business model.

www.nytimes.com/2020/07/14/technology/massachusetts-sues-uber-lyft.html

Uber and Lyft should treat their drivers in Massachusetts as employees with the right to receive benefits, instead of misclassifying them as independent contractors, the state’s attorney general said in a lawsuit filed against the ride-hailing companies.

The suit, made public on Tuesday, makes Massachusetts the second state after California to challenge how Uber and Lyft classify drivers and could deal another blow to their business model. Maura Healey, the state’s attorney general, mailed in the complaint to Massachusetts Superior Court in Suffolk County.

Uber, Lyft and other so-called gig economy companies have maintained that their drivers are independent contractors who are ineligible for benefits like sick leave, paid time off and unemployment insurance. But the companies are facing increasing pressure to reclassify drivers as employees, who would have greater recourse to push back for better working conditions and pay.