A judge ruled Monday that Uber and Lyft must classify their drivers as employees due to a new California law, a decision that threatens the business models of the ride-hailing giants and could upend the gig economy.
A judge ruled Monday that Uber Technologies Inc. and Lyft Inc. must classify their drivers as employees due to a new California law, a decision that threatens the business models of the ride-hailing giants and could upend the gig economy, which relies heavily on contractors.
Driver organizer Nicole Moore of Rideshare Drivers United in Los Angeles said in an interview Monday: “This is absolutely the best-case scenario. It shows that the state of California is behind drivers.” “Drivers do not want to be employees, full stop,” a Lyft spokesman wrote. “We’ll immediately appeal this ruling and continue to fight for their independence. Ultimately, we believe this issue will be decided by California voters and that they will side with drivers.”
U.S. Rep. Ro Khanna, D-Calif., co-author of the Essential Workers Bill of Rights, which he has tried to push through in Congress during the coronavirus crisis, feels the same way. “Because Defendants cannot possibly satisfy the ‘B’ prong of that test, the likelihood that the People will prevail on their claim that Defendants have misclassified their drivers is overwhelming,” Judge Schulman wrote in his ruling.
The judge’s decision on Monday coincided with Uber CEO Dara Khosrowshahi’s op-ed in the New York Times, which addressed concerns about driver benefits that have intensified during the COVID-19 pandemic.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Uber and Lyft drivers are very likely employees, California judge rulesA California state judge on Monday strikes a major blow to Uber and Lyft, ruling that the ride-hailing companies are likely not exempt from a state law that defines their drivers as employees rather than contractors.
Read more »
California Judge Orders Uber And Lyft To Consider All Drivers EmployeesUber and Lyft have been fighting California over whether drivers are employees, entitled to benefits, or independent contractors. A state judge ordered them to consider all those drivers employees.
Read more »
Stocks making the biggest moves after hours: Lyft, Uber, Occidental Petroleum and moreCheck out the companies making headlines after the bell on Monday.
Read more »
Uber, Lyft must classify drivers as employees, CA court rules - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Judge grants preliminary injunction requiring Uber and Lyft to stop classifying drivers as contractorsUber and Lyft still face new lawsuits by California's Labor Commissioner over alleged wage theft.
Read more »