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Lyft is suing the city of San Francisco, saying that the city paid more than $100 million in taxes to the companyBloomberg reports. The lawsuit alleges that, over a five-year period, San Francisco misrepresented the earnings of Lyft drivers as company income.
In the complaint, Lyft argues that its drivers are its customers, not employees. “As a result, Lyft recognizes rideshare revenues as payments to Lyft and drivers, not payments by passengers to drivers,” the complaint read.
The case is the latest chapter in a decades-long debate over how gig economy programs should allocate drivers. Last summer, Lyft, Uber, and DoorDash achieved victory after the California Supreme Court upheld Proposition 22which allows companies to classify drivers as independent contractors, meaning that companies do not have to pay drivers the full amount of work.