Uber Technologies Inc would be forced to shut down its ride-hailing operations in California if a court ruling that blocks it from classifying its drivers as independent contractors goes into effect, the company said in a court filing.
A California judge on Monday granted the state’s request for a preliminary injunction blocking Uber and rival Lyft Inc from classifying their drivers as independent contractors rather than employees.
Several hundred thousand “gig” workers, including many at ride-hailing companies and app-based food delivery services, are affected by the law known as Assembly Bill 5 , which took effect on Jan. 1. The shutdown would irreparably harm Uber and the people who rely on its rides operations to generate income, the company said in its court filing on Tuesday.
“If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” Chief Executive Officer Dara Khosrowshahi was quoted as saying by CNBC on Wednesday.
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.
Court orders Uber, Lyft to reclassify drivers as employees in CaliforniaA California court orders Uber and Lyft to reclassify their drivers in the state as employees
Read more »
California judge orders Uber and Lyft to classify drivers as employeesThe order delivered a major blow to the rideshare giants that have fought to block their drivers from receiving employee protections such as sick leave and overtime pay.
Read more »
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 »
Uber and Lyft ordered to classify workers as employees in CaliforniaA 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.
Read more »
Judge blocks Uber, Lyft from classifying drivers as contractors in CaliforniaA California judge on Monday granted the state's request for a preliminary injunction blocking Uber Technologies Inc and Lyft Inc from classifying their drivers as independent contractors rather than employees.
Read more »