Uber and Lyft say they will shut down their passenger service across California for the foreseeable future unless a state appellate court decides to intervene in a dispute centered on whether their drivers should be classified as employees or contractors.
The mayors did not mention it outright, but they alluded to a proposed law that will be go before California voters in November, known as Proposition 22. It would grant a vast exemption to AB5 for Uber, Lyft and other similar gig economy companies, including DoorDash. The three companies have contributed the overwhelming majority of funding for the largest lobbying group behind Proposition 22.
Uber has threatened to pull out of an area before to pressure politicians who do not bend to its will. In May 2017, the companiesThe dispute centered on whether a city could impose extra requirements, such as fingerprinting and background checks, above and beyond what the state mandated. When the state Legislature passed a law establishing that municipalities could not do so, it paved the way for Uber and Lyft to return.
Since Schulman's ruling last week, attorneys for both sides have filed dueling sets of briefs that are now before the appellate court.
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