Uber and Lyft must reclassify drivers as employees, appeals court finds

  • Uber and Lyft must reclassify drivers as employees, appeals court finds

Uber and Lyft must reclassify drivers as employees, appeals court finds

"This is an absurd lawsuit, without merit, filed exclusively for press attention and without regard for the facts, " Uber spokesman Noah Edwardsen said.

Throughout the case, Uber and Lyft have argued that reclassifying their drivers as employees would cause irreparable harm to the companies. Uber and Lyft would have 30 days from that filing to come into compliance.

This is a victory for the people of California and for every driver who has been denied fair wages, paid sick days, and other benefits by these companies.The law is clear: Drivers can continue to have all of the flexibility they now enjoy while getting the rights they deserve as employees. "It is broad in scope, no doubt, but so too is the scale of the alleged violations".

"Uber and Lyft have used their muscle and clout to resist treating their drivers as workers entitled to those paycheck and benefit protections", Becerra said in a statement. "But these adjectives perhaps say more about the reach of modern technology and the scale of today's technology-driven commerce than they do about the order itself". The law would thus force these firms to offer job protections and other benefits to their workers. The process typically takes two months if the opinion isn't challenged, the court's website says.

"This ruling makes it more urgent than ever for voters to stand with drivers and vote yes on Prop. 22", Lyft spokesperson Julie Wood said.

"Our role in reviewing a decision to issue interim injunctive relief is a limited one, we address here whether the trial court abused its discretion in granting a preliminary injunction that restrains Uber and Lyft from classifying their drivers as independent contractors", the appeals panel said.

However, Gig Workers Rising told Mashable it considers Prop. 22 a "dangerous and deceptive" attempt to deny drivers their legal rights as employees.

Uber claims 72 percent of drivers support Prop. 22, citing a survey of 718 drivers that the company commissioned.

Uber and Lyft's case came about after the state of California passed a law called Ab5, which was introduced for the goal of reclassifying app-based workers, like the ones working in ride-hail and food delivery businesses. The appeals court backed up that ruling on Thursday.

Uber and Lyft issued statements noting that the ruling doesn't take immediate effect and urging voters to approve Proposition 22.