Uber, Lyft Granted Emergency Injunction By California Court

Marco Green
September 29, 2020

AB5 would force companies such as Uber, Lyft, and DoorDash to reclassify their drivers as employees unless they met more stringent criteria.

"For multiple years, we've been advocating for a path to offer benefits to drivers who use the Lyft platform - including a minimum earnings guarantee and a health care subsidy - while maintaining the flexibility and control that independent contractors enjoy", the statement said.

Lyft announced that it was planning to suspend ride-share operations in the state of California at 11:59 p.m. on Thursday.

"Rideshare is ON. The California court has granted our request for a further stay, so our ride share operations can continue uninterrupted, for now".

"If people want to be employed, they can look for a different job", Ramon, a driver supporting the measure known as Proposition 22 who declined to give his full name, was quoted as saying.

In August, California Superior Court Judge Ethan Schulman ruled that Uber and Lyft must classify drivers as employees, a preliminary injunction that Uber and Lyft appealed.

In an undated blog post, Uber addressed its plan to move forward.

The last-minute reprieve averts what was drawing out to be a midnight shutdown of the ride-sharing services in California.

The injunction comes as part of a suit filed against the company which states that it "exploited hundreds of thousands of California workers" by categorizing drivers as independent contractors and are therefore breaking California's AB 5 law, issued in January.

Uber and Lyft insist the vast majority of their drivers do not want to be employees, with some 80 percent reportedly working less than 20 hours per week.

The worker is engaged in an established trade, occupation, or business of the same nature as the work performed.

Uber CEO Dara Khosrowshahi argued for what he described as a "third option" in an op-ed for the New York Times earlier this month in which drivers would remain independent but be afforded some protections.

Previously, Lyft and Uber were set to suspend their services after a judge ordered the companies to classify their drivers as employees. Prop 22 will be on the ballot in the November 3 general election.

"If we had to overhaul our business model, riders would nearly certainly experience dramatic changes too - prices would go up, wait times would increase, and service would not be available in many areas".

Other reports by Click Lancashire

Discuss This Article