Uber may be forced to shut down California ride services over new driver ruling

A California judge on Monday granted the state’s request for a preliminary injunction blocking Uber and rival Lyft Inc from classifying their drivers as independent contractors rather than employees.

Several hundred thousand “gig” workers, including many at ride-hailing companies and app-based food delivery services, are affected by the law known as Assembly Bill 5 , which took effect on Jan. 1. The shutdown would irreparably harm Uber and the people who rely on its rides operations to generate income, the company said in its court filing on Tuesday.

“If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” Chief Executive Officer Dara Khosrowshahi was quoted as saying by CNBC on Wednesday.

I worked for a fruity company in Silicon Valley 1985-1990. Initially, I was a 'freelancer'. They had to hire me along with 100 others because of fair labor laws. If a worker labored solely for you, on your premises, with your tools, they were an employee & entitled to benefits.

Good. Labor is the engine of the company. No drivers=no UBER. UBER should value labor.

And could that headline be any more misleading? They aren't being 'forced to shut down' they are being forced to pay employees fairly (like EVERY OTHER BUSINESS) and pay payroll taxes (also like EVERY OTHER BUSINESS).

By designating them as employees, that means Uber must provide insurance, and pay unemployment taxes for them, if they work more than 30 hours a week, at which point they are classes as full time employees. I expect Uber to restrict their driving hours to stay under the minimum

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We don't want employees!!! We want contractors so we're not responsible for healthcare or giving a shit about them.

'New Driver Ruling' meaning AB5 that was passed in 2019 and went into effect in 2020 designating all previously misclassified independent contractors as employees? The law that Uber has been ignoring for the last year? Is that the reason? Fuck Uber.

good

That’s how Dems kill jobs.

Maybe in Lagos too

marisastio Just close the service in CA. Show ‘me

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Uber and Lyft drivers are very likely employees, California judge rulesA California state judge on Monday strikes a major blow to Uber and Lyft, ruling that the ride-hailing companies are likely not exempt from a state law that defines their drivers as employees rather than contractors. So Uber & Lyft are going to disappear from the Republic of California? Time to change government An employee can organize into a union to collectively bargain fair terms of employment. A gig employee who is classified as a contractor cannot and is powerless. And this is why the world is zooming pass.
Source: NBCNews - 🏆 10. / 86 Read more »