Uber & Lyft threaten to suspend service in California if they have to classify drivers as employees

#Uber #Lyft #California #Lawsuit #Prop22 #AB5

Uber and Lyft are turning to voters as a last resort to maintain their status as contractors for drivers in California after a judge granted a preliminary injunction requiring the companies to reclassify drivers as employees.

Both companies have said they’d be forced to suspend service in the state to reshape their companies around the new model. Once they return, they’ve said they’d likely only be able to hire back a fraction of their workforce under more rigid schedules.

Labor and business experts and Silicon Valley’s congressman said nothing is stopping Uber and Lyft from providing flexible work even while treating drivers as employees.

Uber and Lyft are running out of options in California.

The companies have been fighting to continue classifying their drivers as independent workers, avoiding expenses like healthcare and unemployment insurance for hundreds of thousands of drivers in the state. Last year, they failed to block a bill aimed at classifying gig workers as employees from becoming state law, and then, as of Monday, failed to convince a court the law should not apply to them.

Archived source: http://archive.ph/FrkT5

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