Uber and Lyft drivers rally for batter pay and working conditions at Austin-Bergstrom International Airport in Austin, Wednesday. Thousands of ride-hailing and delivery workers in the U.S. and the U.K. went on strike on Valentine's Day, calling for higher pay and other changes to their working conditions.
California – Thousands of Uber and Lyft drivers across California may finally see justice for years of alleged wage theft, but whether they’ll receive the billions they claim to be owed remains uncertain.
Drivers gathered at city halls in Los Angeles, San Francisco, and San Diego, demanding accountability as state and city officials negotiate a potential settlement with the rideshare giants. The lawsuit, originally filed by the California Justice Department and multiple city governments, alleges Uber and Lyft misclassified drivers as independent contractors between 2016 and 2020, denying them basic employment rights like minimum wage, benefits, and reimbursement for expenses.
“We’re asking the state to stand strong, the cities to have a backbone, and not let these companies off the hook,” said Nicole Moore, president of Rideshare Drivers United, the group that organized the rallies.
At the heart of the dispute is Assembly Bill 5 (AB 5), a 2020 law that classified gig workers as employees, entitling them to protections like minimum wage and overtime. Rather than comply, Uber and Lyft spent over $200 million backing Proposition 22, a ballot measure that overturned AB 5 and allowed gig companies to continue treating drivers as independent contractors.
Proposition 22 passed with 58% of the vote in November 2020, but the lawsuit seeks to recover wages and damages for drivers from the years before the measure took effect. An estimated 250,000 drivers could be eligible for back pay, with claims potentially reaching tens of billions of dollars.
While Uber and Lyft remain tight-lipped on settlement discussions, Uber spokesperson Zahid Arab stated that California voters “have spoken,” adding, “We look forward to putting these years-old matters behind us.”
Moore and other advocates argue that Prop. 22 failed to deliver the benefits gig companies promised. While Uber and Lyft claimed the law would guarantee drivers 120% of minimum wage, researchers at the UC Berkeley Labor Center found that, after factoring in expenses, drivers make as little as $9.09 per hour—far below California’s minimum wage.
“Voters were presented with Prop. 22 as good policy for drivers and passengers,” Moore said. “It was the biggest fraud.”
The lawsuit is one of the last remaining opportunities for drivers to recover lost wages. If no settlement is reached, a trial isn’t expected to begin until 2026.
With Uber’s next mediation session scheduled for Monday and Lyft’s for April 8, drivers are making their voices heard. Whether the state and cities stand firm or compromise remains to be seen, but for those behind the wheel, the stakes couldn’t be higher.
