Uber and Lyft drivers are very likely employees, California judge rules

The judge found that there was an “overwhelming likelihood” that these companies have been misclassifying their drivers as contractors.

8/11/2020 12:40:00 AM

A 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.

The judge found that there was an “overwhelming likelihood” that these companies have been misclassifying their drivers as contractors.

.” If a court ultimately rules against the companies, they could potentially owe huge penalties and substantial restitution to California drivers.“Today’s ruling is a milestone in protecting workers and their families from exploitation by Uber and Lyft,” San Diego City Attorney Mara Elliott said in a text message.

GOP slowly gaining as early vote total surpasses 2016 Taylor Swift’s ‘Folklore’ Back at No. 1 on Billboard 200 Chart for Eighth Week In Waning Days Of 2020 Campaign, Trump Tries To Recapture 2016 Mojo

Lyft spokesman CJ Macklin said by email that the company vowed to appeal the judge’s ruling, but declined to explain on what grounds it would do so.Davis White, an Uber spokesman, said that Uber also planned to appeal the ruling, though he did not include any preview of the company’s legal counterarguments.

The companies have previously warned that forcing them to classify drivers as employees threatens their business models and their ability to provide flexible work for the drivers.In the34-page ordergranting the California attorney general’s motion for preliminary injunction — finding that the ride-share companies have likely run afoul of AB5 and the 2018 California Supreme Court decision upon which it is based. In that case, known as Dynamex, workers are assumed to be employees unless

all parts of a three-part test are met. The AB5 law was drafted to enshrine this court decision into state law.Judge Ethan Schulman of the San Francisco County Superior Court wrote that the companies’ claims that they are not transportation companies “flies in the face of economic reality and common sense.”

“To state the obvious, drivers are central, not tangential, to Uber and Lyft’s entire ride-hailing business,” he wrote.The ruling came the same day that Uber’s CEO, Dara Khosrowshahi, wrote an opinion piece inarguing for a so-called third way, where “all gig economy companies need to pay for benefits, should be more honest about the reality of the work and must strengthen the rights and voice of workers.”

Additionally, Schulman ordered that enforcement of his order would be held for 10 days pending appeal.San Francisco City Attorney Dennis Herrera said the ruling was an important step toward forcing the companies to count its drivers as employees."This is a victory not only for every driver who has been denied fair wages and benefits by Uber and Lyft, but for the public at large," Herrera wrote in an email."For too long these companies have denied their drivers basic workplace protections, like minimum wage and sick leave, and illegally shifted that burden onto taxpayers. Uber and Lyft have pocketed millions of dollars by leaving drivers in the lurch and taxpayers to foot the bill. That ends now."

This is a developing story. Please check back for updates. Read more: NBC News »

Dodgers vs. Rays in World Series Game 4: Dodgers lead 1-0 in second

Live updates and analysis from Game 4 of the World Series between the Dodgers and Tampa Bay Rays at Globe Life Field in Arlington, Texas. The Dodgers lead the series 2-1.

Well taxi drivers you have your business back. Celebrate. Uber and Lyft are dead. NBC29 Yes! Damn!!! That sucks, no more Uber/Lyft in Cali. I guess I need to find a different source of transportation. 🤦‍♂️ And this is why the world is zooming pass. 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.

So Uber & Lyft are going to disappear from the Republic of California? Time to change government

Judge grants preliminary injunction requiring Uber and Lyft to stop classifying drivers as contractorsUber and Lyft still face new lawsuits by California's Labor Commissioner over alleged wage theft. California is the worst

Stocks making the biggest moves after hours: Lyft, Uber, Occidental Petroleum and moreCheck out the companies making headlines after the bell on Monday.

Uber, Lyft must classify drivers as employees, CA court rules - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. it's over. Never even thought that it could happen in the US. So much for the so called free market Are we becoming communists

After Uber reports plummeting rides, traders look ahead to Lyft earningsUber's stock plummeted after it reported a steep drop in gross ride bookings in its recent quarter. But it more than doubled bookings in its Eats business. Lyft, which will be reporting Thursday, does not have that degree of diversity in its portfolio.

Stories From 20+ Women Suing Lyft for Sexual Harassment & AssaultA rideshare is supposed to be the safe option after a night out, but for these women, the reality was the opposite.

Uber, Lyft must classify drivers as employees, CA court rules - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. it's over. Never even thought that it could happen in the US. So much for the so called free market Are we becoming communists