Uber may shut down in California if forced to classify drivers as employees, CEO says

Uber may shut down its operations in California, one of its largest markets in the US, if it is forced to classify drivers as employees, the company’s CEO Dara Khosrowshahi said on MSNBC Wednesday.

Earlier this week, Uber and Lyft were ordered by a California superior court judge to classify their drivers as employees. At issue is the classification of ride-hailing drivers as independent contractors, which Uber and Lyft say most drivers prefer because of the flexibility and ability to set their own hours. But labor unions and elected officials contend this deprives them of traditional benefits like health insurance and workers’ compensation. Both companies have said they would appeal the ruling, which was stayed for 10 days.

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