CA appeals court upholds ruling that Uber and Lyft must classify drivers as employees – ClearTips

CA appeals court upholds ruling that Uber and Lyft must classify drivers as employees – TechCrunch

Uber And lyft Should classify their drivers as employees, an appellate court ruled yesterday evening. However, the decision will be stayed 30 days after the issuance of remittances by the court, which has not yet taken place. This means that depending on how the ballot Proposition 22 goes, this case may not be the deciding factor in the end of how Lyft and Uber classify their drivers in California.

Throughout the case, Uber and Lyft have argued that reclassifying their drivers as employees would cause irreparable damage to companies. In the ruling today, the judge stated that neither would cause any serious or irreparable damage by “preventing the company from violating the law,” and that their respective financial burdens “do not rise to the level of irreparable harm.”

Additionally, there is nothing in the initial injunction, which, according to the judge, would prohibit Uber and Lyft from offering flexibility and freedom to their drivers. In the end, the judge said that Uber and Lyft gave plenty of time to convert their drivers from independent contractors to employees, noting that the key case in passing AB5 to the gig worker bill that spread the lawsuit was in 2018. Was decided

“This decision is more necessary than ever for voters to stand with drivers and vote on Prophet 22,” Lyft spokesman Julie Wood said in a statement to ClearTips.

Prop 22 is a ballot measure in California that wants to keep rideshare drivers and distribution workers classified as independent contractors. This measure, if passed, exempts drivers and delivery workers from a new state law for companies that classifies them as W-2 employees. If passed, app-based transportation and delivery workers would be entitled to things like minimum compensation and health care subsidies based on busy driving times.

Meanwhile, Lyft says it is exploring all of its legal options, which may include appealing to the California Supreme Court. Uber, similarly, is considering its appeal options.

“Today’s ruling means that if voters don’t say yes to Proposition 22, rideshare drivers will be prevented from working as independent contractors, hundreds of California people will be put out of work and across the state of the state Uicher spokeswoman likely to shut down Raicher told ClearTips. “We are considering our appeal options, but the stakes for the driver may not be high – 72% of which support supporters 22 and for California’s economy, where millions of people are unemployed and another 158,000 this week. Unemployment is supported. “

In August, Superior Court of California Judge Ethan Shulman gave an initial injunction to force Uber and Lyft to re-appoint their drivers as employees. Uber and Lyft appealed the decision, but the appeals court has now confirmed the decision to the lower court.

The lawsuit was brought in May by California Attorney General Javier Becerra, with city attorneys from Los Angeles, San Diego and San Francisco in May. They argued that Uber and Lyft gained an unfair and unlawful competitive advantage by miscooling workers as independent contractors. Then, in June, the plaintiff filed an initial injunction and compelled Uber and Lyft to recall their drivers from the court. In August, Judge Shulman approved it.

Gig Workers Rising said in a statement, “This legal victory is won by two companies today, but the battle is far more widespread.” “It is about the future of work in this country. It is about achieving good jobs with real benefits for generations to come. If Uber and Lyft succeed in passing Prophet 22 and undoing the will of the people, they will inspire countless other corporations to adapt their business models and misconceptions. staff To further enrich the rich at the cost of their workforce. “

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