Uber, Lyft Facing New State Suit Over Driver Classification (1)

Uber Technologies Inc. and Lyft Inc. were sued by Massachusetts for allegedly misclassifying their drivers as independent contractors instead of employees to avoid paying minimum wage or overtime, expanding legal risks for the companies that began in California.

“For years, Uber and Lyft have built their billion-dollar businesses on a model that exploits drivers,” Massachusetts Attorney General Maura Healey said in a video message posted to Twitter on Tuesday. “Billion-dollar businesses don’t get to pick and choose which laws they follow.”

The misclassification lets the ride-hailing companies avoid giving drivers paid time off when their sick, a practice that essentially ...