Pasadena rideshare driver Ricardo Valladares says he’s owed more than $680,000 in back pay and damages from rideshare companies Uber and Lyft in a wage theft case dating back nearly a decade.
Valladares, who drives a Cadillac sedan, is among 5,000 drivers who allege the two rideshare companies owe the group as much as $1.3 billion in back pay — about half of which is for damages.
“We are not even getting paid minimum wage,” said Valladares, adding that he earns about $7-$8 hourly after subtracting mileage, car insurance and wear-and-tear on his vehicle. “Drivers need more equity. I’ve got a $610-a-month car payment.”
Valladares and thousands of other rideshare drivers are waiting for settlement claims that predate Proposition 22. The 2020 ballot initiative shields Uber and Lyft and other app-based delivery companies from having to pay drivers as employees.
At least 100 rideshare drivers with Lyft and Uber rallied on Wednesday, March 26 at Los Angeles City Hall where they encouraged City Attorney Hydee Feldstein Soto to move quickly to resolve the wage dispute, which is in the final stages of settlement talks.
Also see: California Uber and Lyft drivers could get back pay
Feldstein Soto is one of three city attorneys in California — as well as state Attorney General Rob Bonta and California Labor Commissioner Lilia Garcia-Brower — who have intervened on behalf of the drivers in court to get Lyft and Uber to adhere to equitable wage laws in the state. They argue that they want the ride-share companies to treat them as employees and not as independent contractors.
The settlement would not undo Proposition 22, covering just back wages and possibly damages.
Uber spokesman Zahid Arab said Wednesday in a statement that “drivers come to Uber precisely because of the unique flexibility that it provides.”
Prop. 22, he said, “safeguarded their choice to work independently, while ensuring important new protections. The voters of California have spoken — overwhelmingly — and we look forward to putting these years-old matters behind us.”
A Lyft spokesman was not available for comment.
Nicole Moore, president of the labor union Rideshare Drivers United, which is representing drivers statewide, estimates the damages and back pay settlement could actually reach into the “billions of dollars” since more than 250,000 drivers worked during the 2016-2020 period.
The rally Wednesday came on the eve of scheduled mediation sessions with Uber and Lyft set for March 31, Moore said.
The lawsuit filed by the state and city officials accuses the companies of misclassifying their workers as independent contractors and failing to pay minimum wage for all time worked, not paying for breaks, overtime and sick time.
The companies previously argued that wage theft lawsuits filed by California against Uber and Lyft in 2020 were invalid because their drivers signed arbitration agreements.
However, the state and city officials argued that Assembly Bill 5 — signed by Gov. Gavin Newsom on Sept. 18, 2019 — required the companies to treat delivery drivers as employees. But the companies argued otherwise, saying that the state law was unconstitutional and unfairly targeted them.
The plaintiffs in the case filed their lawsuits before Uber, Lyft and other gig companies successfully backed Prop. 22, exempting them from California labor law.
That measure was upheld in May 2024 by the state Supreme Court.
Prop. 22 allowed gig companies to treat drivers and delivery workers as independent contractors.