Uber, Lyft granted reprieve just hours before shutdown in California
Uber and Lyft have been granted an emergency stay on an order that would force them to reclassify their drivers, just hours before both companies said they would shut down operations in California because of it.
Uber and Lyft aren't shutting down in California yet
Lyft on Thursday said it could cease all operations through California on Aug. 20, in response to a state proposal to reclassify its drivers as employees instead of independent contractors. At the time, Uber was said to be close behind.
Just hours before the ride-sharing companies were set to shut down in California, a State appeals court granted an emergency reprieve that would allow them to temporarily continue operations, CNBC reported.
The order gives both ride-sharing companies until 5 p.m. Pacific Time on Aug. 25 to file written statements agreeing to certain outlined expedited procedures. It isn't clear whether Uber or Lyft will change their plans to shut down in California, but the emergency stay could prompt them to continue operating.
Both companies aren't off the hook yet. They'll have 30 days to show that they'll comply with the state law requiring them to reclassify drivers if their appeal fails, or a bill that would block the changes -- Prop 22 -- doesn't pass.
Oral arguments for the appeal are set for Oct. 13.
The injunction was originally requested by California Attorney General Xavier Becerra in connected to a May lawsuit, and on Aug. 10, a California court ruling placed the injunction on the two companies. The injunction gave both companies 10 days to comply with the order to give them a chance to appeal -- and both Uber and Lyft said that they did.
That May lawsuit alleged that Uber and Lyft were in violation of California labor law AB5, which seeks to grant benefits to gig economy workers and independent contractors. Uber and Lyft opposed AB5 before it passed, but afterward it did, they claimed that they were not subject to it because they were technology platform providers and not employers.
Uber and Lyft aren't shutting down in California yet
Lyft on Thursday said it could cease all operations through California on Aug. 20, in response to a state proposal to reclassify its drivers as employees instead of independent contractors. At the time, Uber was said to be close behind.
Just hours before the ride-sharing companies were set to shut down in California, a State appeals court granted an emergency reprieve that would allow them to temporarily continue operations, CNBC reported.
The order gives both ride-sharing companies until 5 p.m. Pacific Time on Aug. 25 to file written statements agreeing to certain outlined expedited procedures. It isn't clear whether Uber or Lyft will change their plans to shut down in California, but the emergency stay could prompt them to continue operating.
Both companies aren't off the hook yet. They'll have 30 days to show that they'll comply with the state law requiring them to reclassify drivers if their appeal fails, or a bill that would block the changes -- Prop 22 -- doesn't pass.
Oral arguments for the appeal are set for Oct. 13.
The injunction was originally requested by California Attorney General Xavier Becerra in connected to a May lawsuit, and on Aug. 10, a California court ruling placed the injunction on the two companies. The injunction gave both companies 10 days to comply with the order to give them a chance to appeal -- and both Uber and Lyft said that they did.
That May lawsuit alleged that Uber and Lyft were in violation of California labor law AB5, which seeks to grant benefits to gig economy workers and independent contractors. Uber and Lyft opposed AB5 before it passed, but afterward it did, they claimed that they were not subject to it because they were technology platform providers and not employers.
Comments
Yep. Wait until the drunk drivers start hitting the road again. MADD should be backing Prop 22 big time.
Unions authored this crap law so people would be forced out of voluntary contracts (which they all wanted, by the way) and into unions. Why? Because unions are pushing the buttons in Sacramento and when these overstuffed unions bark, their politicians jump as high as they are demanded.
Think about it. Self-driving buses and cabs are about 2-3 years away from ubiquity. They’ll have been proven safe and human drivers will be unnecessary. Idiotic laws like this place a burden on freelancers who are making money today because they won’t have the option available in several years.
And no one is going to be amenable to the idea of paying a bunch of deadbeats for doing nothing by then, especially after the multi-trillion dollar burdens start to hit reality from sending paychecks to those stuck at home due to the political reaction to COVID.
Drivers lose money. Wear and tear on vehicle, gas, etc.
Yes, schools must teach algebra and geometry, also accounting, and simple taxation and practical use of spreadsheets. If drivers had that kind of education, there would be no drivers for Uber or Lyft.
Self driving is 15 years away at least.
If cities banned all human-driven vehicles, and turned all streets into self-driving systems, then everything would change. No parking would be required (a vehicle spends at least 95% of its time parked), no drivers insurance, no drunk driving (only drunk passengers), no police enforcement, no accident investigations, if timed right, no traffic congestion. Most people would not have to own cars. And the cars could mostly be all-electric. No gas stations. Many streets themselves could be turned into pedestrian areas,
Just, self-organizing mass transit. New jobs would be maintenance of these vehicles.
folks like you have zero clue what’s going on and what’s driving this. If anyone is being played, it’s you guys.