A California judge signaled on Thursday he might be leaning against a request for a preliminary injunction forcing Uber Technologies Inc and Lyft Inc to classify drivers as employees rather than contractors.
FILE PHOTO: A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, U.S., May 13, 2020. REUTERS/Mike Blake/File Photo
But he suggested caution before rushing into a potentially “sweeping” injunction that could affect hundreds of thousands of people. Several hundred thousand “gig” workers, including many at ride-hailing companies and app-based food delivery services, are affected by the law, Assembly Bill 5 , which had broad support from organized labor. It took effect on Jan. 1.The plaintiffs have said the contractor classification deprives drivers of essential benefits such as a minimum wage, overtime, sick leave, unemployment insurance and workers’ compensation insurance.
Matthew Goldberg, a lawyer for San Francisco, told Schulman that Uber and Lyft “dramatically overstated” the threat of negative fallout.
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