In a demonstration of increasing scrutiny in the gig economy, a recent cease-and-desist notice has caught the attention of legal professionals across the globe. The New York Attorney General, Letitia James, last Friday, warned a New York City-based law firm to immediately halt its practice of offering unnecessary legal services to aid Uber and Lyft drivers in securing funds, for a fee, from a November New York Labor Law settlement. This directive demands immediate action from legal entities involved.
The directive from the Attorney General’s office puts a renewed spotlight on ethical concerns in legal practices, specifically those involving workers in the gig economy. As ride-sharing apps like Uber and Lyft are providing an increasing number of jobs, there are growing discussions over the legality and fairness of their practices. In this particular case, the law firm is accused of deliberately misleading drivers by offering redundant services, charging fees for assistance in securing funds which are a result of a labor law settlement, that drivers are already entitled to.
Though this move by the Attorney General Letitia James is specific to one law firm, it punts a larger conversation into forward gear. How firms interact with ride-sharing drivers and other independent professionals in the gig economy may come under higher scrutiny. Decisions and directives like the one delivered last Friday are not simply isolated incidents, but instead, they indicate a larger trend of vigilance and accountability within the legal community.
More information about the cease-and-desist letter and the circumstances leading to its issuance can be found on Law360.