• Home
  • Apps
  • Apps News
  • Uber, Lyft Lose Appeal to Avoid California Labour Law; Cannot Classify Drivers as Independent Contractors

Uber, Lyft Lose Appeal to Avoid California Labour Law; Cannot Classify Drivers as Independent Contractors

Uber and Lyft also have the option of appealing the decision to a higher court.

Share on Facebook Tweet Snapchat Share Reddit Comment
Uber, Lyft Lose Appeal to Avoid California Labour Law; Cannot Classify Drivers as Independent Contractors

Uber argued requiring drivers to be classified as employees would leave jobs only for fraction of drivers

Highlights
  • The order directed the ride-share companies to comply with the new law
  • The order was put on hold while it was appealed
  • Ballot measure by companies would keep drivers classified as contractors

An appeals court on Thursday rejected a bid by Uber and Lyft to avoid having to continue treating drivers as independent contractors while battling the California labour law.

A judge in August granted a restraining order in a lawsuit filed by California attorney general Xavier Becerra and three cities including San Francisco, where Lyft and Uber are based.

The order directed the ride-share companies to comply with the new law and stop classifying drivers as independent contractors while a lawsuit plays out in court.

That order was put on hold while it was appealed.

"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 court panel said in its ruling.

"Seeing no legal error, we conclude the trial court acted within its discretion and accordingly affirm the order as issued."

The decision could turn out to be moot, however, because the injunction would not take effect until after California voters determine the fate of a ballot measure that could exempt the ride-share services from the law.

Uber and Lyft also have the option of appealing the decision to a higher court.

A ballot measure sponsored by the companies would keep drivers classified as contractors but provide benefits such as healthcare.

Uber has argued that requiring drivers to be classified as employees would leave jobs only for a small fraction of its drivers and that rides would become more expensive.


Are iPhone 12 mini, HomePod mini the Perfect Apple Devices for India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Uber, Lyft
Amazon Great Indian Festival 2020 Sale: Best Offers on Smartphones, Smart Speakers, Wi-Fi Routers, and More
Huawei Mate 30E Pro With Kirin 990E SoC Launched: Specifications

Related Stories

 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2020. All rights reserved.
Listen to the latest songs, only on JioSaavn.com