Uber and Lyft get last-minute California reprieve

OAKLAND, Calif. — A California appeals court has stayed an order that would have forced Uber and Lyft to reclassify their drivers, giving the companies a reprieve just hours before they planned to halt operations in California rather than comply.

A previous court order compelled Uber and Lyft to stop classifying their drivers as independent contractors by the end of Thursday. The companies said that if they did not win a reprieve, they would have no choice but to temporarily shut down in California because they do not have the time to make necessary changes to their workforces.

But California’s 1st Circuit Court of Appeal granted the companies’ request for a stay on Thursday morning.

The decision delays Uber and Lyft’s plans to halt their operations in California and buys them more time to fight a lawsuit from California Attorney General Xavier Becerra accusing them of violating California law by misclassifying their drivers.

Becerra sued the companies for running afoul of a new state law, Assembly Bill 5, that broadly requires more employers to treat their workers as employees, not independent contractors, under a framework created by the California Supreme Court.

A judge last week granted Becerra’s request for an injunction forcing the companies to reclassify their workers; the companies had urged the courts to wait as the underlying legal case played out.

Oral arguments are set for Oct. 13. Less than a month after that, California voters will make a critical decision by voting on Proposition 22, a measure sponsored by gig companies that would let them continue to treat workers as contractors while offering some wage and benefit guarantees.

Source: https://www.politico.com/states/california/story/2020/08/20/uber-and-lyft-get-last-minute-california-reprieve-1310874
Droolin’ Dog sniffed out this story and shared it with you.
The Article Was Written/Published By: Jeremy B. White

! #Headlines, #California, #Employment, #GigEconomy, #Jobs, #Newsfeed, #Political, #Politico, #Trending, uber, #News, #Politics