Post by Lomelis on Aug 21, 2020 7:27:38 GMT
Uber, Lyft Will Not Suspend Service In California After Court Gives Them More Time
Uber and Lyft spent the past week threatening to shut down their ride-hailing services in California at the stroke of midnight on Thursday.
But the companies got a last-minute reprieve from complying with a judge's order to classify their drivers as employees, instead of independent contractors, as required by a state labor law.
On Thursday afternoon, an appeals court said the companies can keep operating with their drivers as independent contractors while they fight the order.
The court has also given the companies until early September to come up with plans for how they would comply with the law.
The threatened shutdown would have left hundreds of thousands of drivers without work and millions of customers with one fewer transportation option in California, which is among both companies' biggest markets.
Uber and Lyft spent the past week threatening to shut down their ride-hailing services in California at the stroke of midnight on Thursday.
But the companies got a last-minute reprieve from complying with a judge's order to classify their drivers as employees, instead of independent contractors, as required by a state labor law.
On Thursday afternoon, an appeals court said the companies can keep operating with their drivers as independent contractors while they fight the order.
The court has also given the companies until early September to come up with plans for how they would comply with the law.
The threatened shutdown would have left hundreds of thousands of drivers without work and millions of customers with one fewer transportation option in California, which is among both companies' biggest markets.
Over a hundred thousand more jobs would be lost if this judge didn't step in.