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August 10, 2020 10:40 pm

California Judge Orders Uber and Lyft To Classify Drivers As Employees

A California judge ruled that Uber and Lyft must classify their drivers as employees in a stunning preliminary injunction issued Monday afternoon. The Verge reports: The injunction is stayed for 10 days, however, giving Uber and Lyft an opportunity to appeal the decision. Uber said it planned to file an immediate emergency appeal to block the ruling from going into effect. [...] Drivers' groups hailed the ruling as forward progress in their fight to upend Uber and Lyft. "Today's ruling affirms what California drivers have long known to be true: workers like me have rights and Uber and Lyft must respect those rights," Mike Robinson, a Lyft driver and member of the Mobile Workers Alliance, a group of Southern California drivers, said in a statement. But Uber maintains this ruling will result in fewer jobs during a global pandemic that is putting strain on the state's economic conditions. "The vast majority of drivers want to work independently, and we've already made significant changes to our app to ensure that remains the case under California law," an Uber spokesperson said. "When over 3 million Californians are without a job, our elected leaders should be focused on creating work, not trying to shut down an entire industry during an economic depression." A Lyft spokesperson agreed. "Drivers do not want to be employees, full stop," the spokesperson said. "We'll immediately appeal this ruling and continue to fight for their independence. Ultimately, we believe this issue will be decided by California voters and that they will side with drivers." Earlier today in an op-ed via The New York Times, Uber CEO Dara Khosrowshahi said lawmakers should require gig economy companies to create benefits funds, which would "give workers cash that they can use for the benefits they want, like health insurance or paid time off."

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