California wins ruling against Uber, Lyft

Uber Technologies Inc. and Lyft Inc. were ordered Monday to convert their California drivers from independent contractors to employees with benefits, an early loss in a court battle that the gig economy can’t afford to lose.

The judge’s Monday ruling won’t be the last word, as the ride-hailing companies are expected to appeal the far-reaching preliminary injunction. If the companies are forced to reclassify their California drivers as employees, they would be on the hook for overtime, healthcare and other costly benefits.

The case brought by California officials to enforce Assembly Bill 5, a state labor law that took effect this year, is the most serious legal threat yet to the gig economy — and it comes at a particularly difficult time for the ride-hailing industry. …

Click here to read the full article on the L.A. Times.

Comments

  1. One wonders the cheapest appeal path for Uber/Lyft:
    1) go through the courts
    2) suspend service to CA and wait for voters to SCREAM LOUDLY

    Uber/Lyft are popular outside of official taxi companies. Option 2 might be a cheaper, simpler route.

  2. The whole idea was not for a full time job. I was for part time work for people like students to be able to make a little extra money by working between classes. This is now impossible and will probably cause some people to drop out of college for lack of money. This is all because the unions don’t want anyone to be able to work that is not under their control

  3. Public sector bureaucrats dictating private-sector “free” enterprise, what could go wrong?
    I hope it goes to the Supreme Court. California courts are garbage.

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