Massachusetts sues Uber and Lyft over driver classification

Massachusetts filed a lawsuit against Uber and Lyft on Tuesday claiming the app-based companies are misclassifying drivers as independent contractors rather than employees. The state is the latest to challenge the way the multibillion-dollar ride-hailing industry treats its workers.

“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 announcing the lawsuit. “Uber and Lyft set the rates. They alone set the rules. Drivers are employees.”

Massachusetts is the second state to sue Uber and Lyft over the misclassification of drivers. In May, California Attorney General Xavier Becerra, along with city attorneys of Los Angeles,...

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