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Uber sues Colorado over law mandating pay disclosure for drivers
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Uber sues Colorado over law mandating pay disclosure for drivers
Jan 13, 2025 9:39 AM

Jan 13 (Reuters) - Uber Technologies ( UBER ) has filed a lawsuit

claiming that a novel Colorado law requiring transportation

services to disclose certain information to drivers at the end

of a trip violates its free speech rights under the U.S.

Constitution.

Uber ( UBER ) in a complaint filed in Denver federal court on

Saturday said the law, which is set to take effect Feb. 1, is

designed to spread inaccurate information and "shame" the

company and its competitors into changing their practices.

Among other requirements, the law mandates that

"transportation network companies" like Uber ( UBER ) and Lyft ( LYFT ) disclose

to drivers the total amount a passenger paid for a trip, the

share paid to the driver, and the amount of any tips.

The information must be provided immediately on a single

screen and "in a font that is larger than the font used to

present any other information on the screen."

The law is the first of its kind in the country and

represents the latest effort in a decade-long campaign to extend

many of the legal rights granted to companies' employees to

drivers for app-based services and other "gig" workers, who are

typically treated as independent contractors.

But Uber ( UBER ) says that without more context, such as accounting

for tolls and insurance paid for by the company, the information

it must disclose under Colorado's law could be misleading.

"At bottom, this disclosure requirement is a veiled attempt

at shaming Uber ( UBER ), and similarly situated companies, into changing

its fees and causing unnecessary uproar around inaccurate data,"

Uber ( UBER ) said in the lawsuit.

The Colorado Department of Labor and Employment, which will

enforce the law and is named as a defendant, declined to

comment. The office of Governor Jared Polis, a Democrat also

named in the lawsuit, did not immediately respond to a request

for comment on Monday.

Uber ( UBER ) also filed a motion for a temporary restraining order

that would block the disclosure requirements from taking effect

while the case plays out.

The lawsuit claims that Colorado's law violates Uber's ( UBER )

rights to free speech and free association under the First

Amendment of the U.S. Constitution.

The law also requires companies to disclose their policies

for terminating or deactivating drivers and for reconsidering

those decisions, and to disclose the fare, distance, and

direction of trips to drivers before they accept rides. It also

requires companies to disclose certain aggregate information to

the state, such as total mileage driven and data about

deactivated drivers. Uber ( UBER ) is not challenging those provisions.

The case is Uber Technologies ( UBER ) v. Moss, U.S. District Court

for the District of Colorado, No. 1:25-cv-00096.

For Uber ( UBER ): Frederick Yarger, Katie Reilly and Virginia

Creighton of Wheeler Trigg O'Donnell; Michael Gottlieb, Jeremy

Bylund, Simona Agnolucci, Jonathan Patchen, Argemira Florez and

Alyxandra Vernon of Willkie Farr & Gallagher

Read more:

Biden independent contractor rule upheld by US judge

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