LATEST: An appeals court in California grants Uber and Lyft an emergency stay, giving the ride-share giants more time to appeal a ruling that required them to classify drivers as employees instead of independent contractors.
an emergency stay on Thursday, giving the ride-share giants more time to appeal a ruling that required them to classify drivers as employees instead of independent contractors.
Uber's CEO Dara Khosrowshahi threatened in an interview with NBC News last week that it may also temporarily suspend operations in California as a result of the ruling. "The California court has granted our request for a further stay, so our rideshare operations can continue uninterrupted, for now," the company said."Thanks to the tens of thousands of drivers, riders, and public officials who urged California to keep rideshare available for so many people who depend on it."The two companies have five days to file written consents, which would include consolidating appeals, or the stay will expire on Aug. 25.
A ride-share driver displays a sign reading"The Uber Initiative Hurts Drivers" during a car rally by Uber and Lyft drivers calling for basic employment rights at Los Angeles International Airport on Aug. 20, 2020 in Los Angeles.In the initial blog post announcing it was suspending operations in California, Lyft had argued that the changes would"necessitate an overhaul of the entire business model," adding,"It’s not a switch that can be flipped overnight.
Uber and Lyft have previously argued that their businesses are platforms that connect customers to drivers, rather than transportation companies. San Francisco Superior Court Judge Ethan P. Schulman dismissed that reasoning in his ruling last week, writing that it"flies in the face of economic reality and common sense."
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