Published 10:34 IST, August 11th 2020
California judge's order prevents Uber and Lyft from classifying drivers as contractors
Due to the recent orders by a California judge, Uber Technologies Inc and Lyft Inc will not be able to classify their drivers as independent contractors
Due to the recent orders by a California judge, Uber Technologies Inc and Lyft Inc will not be able to classify their drivers as independent contractors instead of employees. As per reports, the judgment was delivered on August 10 by Judge Ethan Schulman of San Francisco Superior Court.
Big blow to the ride-hailing companies
According to reports, the judgment comes as a major blow to the ride-sharing companies as they prepare to defend themselves against a May 5 lawsuit brought against them by state Attorney General Xavier Becerra and the cities of Los Angeles, San Diego and San Francisco.
The lawsuit against the companies states that they have violated Assembly Bill 5 which is a new state law that states that companies must classify their workers as employees if the company controls the way the workers do their jobs and if the work being done is part of the companies normal business.
The 34-page reports stated that both the companies had refused to comply with state law, and Judge Shulman has stated that the plaintiffs seem highly likely to be able to prove that Uber and Lyft classified their drivers illegally. Los Angeles City Attorney Mike Feuer reportedly said in a statement that the judge’s decision was a resounding victory to thousands of Uber and Lyft drivers who have been risking their lives and continue to work during the pandemic.
In a statement responding to the judgment, Lyft stated that their drivers themselves do not want to be classified as employees. Uber has not yet commented on the decision. In November, Californians will vote on Proposition 22 which states if app-based drivers can be classified as contractors and Lyft strongly believes that Californians will vote in favour of classifying them as drivers.
Updated 10:34 IST, August 11th 2020