False Claims Open New Gig Worker Classification Fight Frontier

A Nevada lawsuit alleging Lyft committed fraud by misclassifying its workers as independent contractors is a new test case in the fight over worker protections at the state level.

A federal judge earlier this month allowed a former driver’s complaint against rideshare giant Lyft Inc to proceed, advancing allegations the company intentionally defrauded Nevada’s unemployment compensation system by treating its drivers as independent contractors.

The lawsuit cites violations of Nevada’s False Claims Act, which mirrors a federal statute that makes it illegal to “knowingly” conceal or avoid obligations to pay the government.

The issue of how workers in the gig-economy ...