Although the law went into effect in January, Uber and Lyft have not changed their practices.

Author : livestreamer
Publish Date : 2021-03-07


Although the law went into effect in January, Uber and Lyft have not changed their practices.

The standoff culminated last week when a San Francisco Superior Court judge, Ethan Schulman, sided with the state, ordering Uber and Lyft to reclassify their drivers by Thursday.

Uber and Lyft get a posteriorly active break threatened with barricading

But hours before the power outage began, an appeals court granted a temporary stay to Uber and Lyft, allowing them to continue operating while the court evaluates their appeal. Oral arguments in the case are scheduled for mid-October.

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"We are pleased that the Court of Appeal has recognized the important issues raised in this case and that access to these essential services will not be interrupted as long as we continue to defend the ability of drivers to work with the freedom they want," said Matt Kallman, an Uber spokesman.

The fight could go on for months, as Uber and Lyft battle a state labor law meant to give benefits to stage workers. An appeals court is assessing companies ' requests to overturn a judge's order to hire drivers, but it is unclear when the court will make a decision. The court ordered Uber and Lyft to submit plans to hire employees by early September, in case the court does not decide in their favor.

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"These companies may have bought themselves a little more time, but the price is that they must demonstrate – under oath-that they have an implementation plan that complies with the 

State officials said businesses must comply with a new law, known as Assembly Bill 5, so workers have access to sick leave, overtime and other benefits – a need that has become more urgent during the coronavirus pandemic.

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But Uber and Lyft argued that employing drivers would have a catastrophic impact on their businesses, forcing them to raise fares and hire only a small fraction of the drivers who currently work for them. They would temporarily close businesses rather than comply, they said.

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” While we don't have to suspend operations tonight, we must continue to fight for independence and benefits for drivers, " said Julie Wood, a Lyft spokeswoman.

Uber and Lyft have long classified drivers as independent contractors, an arrangement that companies say allows drivers to have more control over where and when they drive. But this model imposes a financial burden on drivers, who are responsible for maintaining their own vehicle, health insurance and other expenses that employers traditionally cover.

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Last year, the California legislature passed AB 5 in a bid to set clearer employment standards for the state and rein in gig economy giants like Uber. Lawmakers argued that Uber had failed its drivers and exploited an unfair advantage over law-abiding companies in the state.

"Our state and our workers should not have to pay the bill when large companies try to shirk their responsibilities," said California Attorney General Xavier Becerra.



Category :business

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