California wins injunction against Uber, Lyft classifying drivers as contractors

California passed Assembly Bill 5 late very last 12 months in a bid to reclassify several gig economy staff as staff, and so considerably, Lyft and Uber have not finished that. The state is suing them, and on Monday afternoon Choose Ethan Schulman of San Francisco Top-quality Court dominated in favor of granting a preliminary injunction that would block the providers from classifying drivers as independent contractors.

Reuters reviews that in the 34-site choice Schulman explained there is an “overwhelming likelihood” that the state will demonstrate the two providers have illegally misclassified staff, and that they fall short the law’s three-move take a look at to identify if staff are staff. He delayed enforcement of the ruling for ten days to enable for appeals, which both equally providers approach to go after, whilst the San Francisco Chronicle reviews Uber also explained it will drive for a extended continue to be. In a statement, Lyft explained “We’ll right away charm this ruling and carry on to battle for their independence. Ultimately, we imagine this challenge will be made a decision by California voters and that they will side with drivers.”