Court wards off Uber, Lyft from classifying drivers as freelancers
Category: #headlines  By Nikita Chaurasia  Date: 2020-08-12
  • share
  • Twitter
  • Facebook
  • LinkedIn

Court wards off Uber, Lyft from classifying drivers as freelancers

A California judge has reportedly issued a preliminary injunction that would prevent ride-hailing companies Lyft Inc. and Uber Technologies Inc. from classifying their drivers as freelancers rather than employees. The recent development follows the lawsuit filed by the California labor commissioner, alleging the two companies over wage theft.

For those unfamiliar, California labor commissioner Lilia García-Brower had applied for motion for a preliminary injunction that would compel Uber and Lyft to reclassify their drivers as company employees. The classification of drivers as independent contractors has apparently violated the California labor law and deprived the drivers of any legal protections.

Sources aware of the development stated that Judge Ethan Schulman from Superior Court in San Francisco delayed the enforcement by providing a 10-day stay in order to give the ride-sharing companies a chance to appeal. This means that the injunction will not affect Uber or Lyft’s services for now. However, a spokesperson from Uber stated that the company is planning to file for an appeal immediately.

Reportedly, Uber has made changes to its mobile app since AB5 was imposed. The company has allowed drivers to set their own tariffs in order to avoid the reach of the new law. In fact, Uber, Lyft, and DoorDash have invested over USD 100 million on a 2020 ballot measure that intends to undermine the AB5 law, sources claimed.

Edan Alva, a member of Gig Workers Rising and a Lyft driver mentioned in a statement that numerous drivers have requested these companies to drop their efforts to avoid AB5 enforcement and focus towards providing aid to their employees.

Shares of Uber Technologies Inc. and Lyft Inc. had also dropped following the lawsuit. Uber’s share fell by 1.5% while Lyft lost 1.7% in extended trading. 

Source Credits –

https://www.theguardian.com/technology/2020/aug/10/uber-lyft-ruling-california-judge

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia    

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More

More News By Nikita Chaurasia

Ransomware attack cripples IT systems of United Health Services Inc.
Ransomware attack cripples IT systems of United Health Services Inc.
By Nikita Chaurasia

  The company claims that no patient records were compromised. UHS system files were being renamed with the addition of a ‘.ryk’ extension. Universal Health Services Inc. (UHS), U.S.-based leading healthcare service provider w...

New research claims sufficiency of vitamin D reduces COVID-19 severity
New research claims sufficiency of vitamin D reduces COVID-19 severity
By Nikita Chaurasia

According to a recent study, COVID-19 patients having sufficient levels of vitamin D, with at least 30 ng/mL of 25-hydroxyvitamin D in their blood, are less likely to witness severe clinical outcomes and deaths. The study, which was published by the...

Amazon adds indoor surveillance drone to security solutions portfolio
Amazon adds indoor surveillance drone to security solutions portfolio
By Nikita Chaurasia

  This is the next big launch after the announcement of car security devices Indoor drone will offer video surveillance in places devoid of static cameras U.S.-based multinational technology giant, Amazon.com Inc. along with Ring Inc. has ...