Uber and Lyft are still obligated to classify drivers as employees after a California superior court judge denied the companies’ attempt to delay a preliminary injunction from going into effect. The two companies have threatened to leave the state if they are forced to change the status of their drivers from independent contractors to employees.
Earlier this week, Uber and Lyft were ordered by California Superior Court Judge Ethan Schulman to classify their drivers as employees. The ruling was in response to a preliminary injunction filed by California Attorney General Xavier Becerra as part of a lawsuit alleging the companies are in violation of the state’s AB5 law that went into effect on January 1st. The law enshrines the so-called “ABC test” to determine if someone is a contractor or an employee.\
But neither Uber nor Lyft appears ready to pack its bags quite yet. Spokespersons for both companies said they would be seeking further relief from the courts and would file another appeal before the end of the week.
The 10-day deadline to force drivers to be reclassified started when the judge issued the ruling on August 10th. If Uber and Lyft’s additional appeals are denied or not heard in time, the ride-hail companies say they will follow through on their threat to cease operations in California after August 20th.
The only thing the state wants is increased tax revenue.
With a new boatload of employees on the payrolls, state tax revenues increase. Sure they will. Add yesterday’s bill in the capital to add a wealth tax. Suicide is painless, it brings on many changes….
I’m sitting here in my backyard, working from home, a mile from the state capital building, surrounded by leftists, and all of them cheering these developments. Liberals are dumber than the sheep they are.
@All Too Much:
Correct. But the state most definitely includes the pols whose campaigns and lavish lifestyles are funded in large part by unions. AB5 was IMO also designed to advance the goal of unions to “organize” ride-share drivers and turn them into dues- as well as tax-paying serfs.
Uncle Al
The states original target was part time “Code writers”. I have no idea why they would target them. But the didn’t eliminate 1099 employees. They tried to punish certain industries and Uber and Lift got caught in the cross fire.
I’m hoping they leave. Just a little more anger directed towards the Nazis.
Let us know when the urban campers go too.
Uber and Lyft leaving isn’t a bug, it’s a feature. The Taxi unions, etc. love this and will reward those who effected this. Nobody cares about the drivers or the passengers, it’s just who can I favor in a law so that they will give me money?