‘Greedy corporations’ | Uber & Lyft accused of dodging $266mn in benefit contributions through employee misclassification

A Massachusetts State Auditor released a report on Tuesday, April 30, accusing companies like Uber and Lyft of avoiding payments of over $266million into the state’s employee protection programs.

The report, titled “Assessing Transportation Network Companies’ Financial Obligations to Massachusetts Programs,” suggests that the companies have dodged benefit contributions through employee misclassification.

Compensation, unemployment insurance, and paid family leave programs are all included in the estimations from State Auditor Diana DiZoglio, estimating that by deeming workers as independent contractors, Uber and Lyft avoided $47million in payments in 2023 alone.

The “conservative” figures do not include other programs such as food and healthcare assistance.