Technology

Judge issues injunction against Uber and Lyft, says drivers are employees





Hundreds of ride-hail drivers in California have lengthy fought to be categorized as workers.


James Martin/CNET

In a blow to Uber and Lyft, a California choose dominated Monday that the ride-hailing corporations should begin classifying their drivers as workers within the state. That is one thing the businesses have fought for years as a result of it might imply thousands and thousands of {dollars} in added prices and an entire overhaul of their enterprise fashions.

Decide Ethan Schulman of the San Francisco Superior Court docket stated the injunction will not be enforced for 10 days, in order to provide Uber and Lyft an opportunity to attraction the choice — one thing each corporations stated they will do.

“We’ll instantly attraction this ruling and proceed to battle for [drivers’] independence,” a Lyft spokesman stated. An Uber spokesman stated, “We plan to file a right away emergency attraction on behalf of California drivers.” 

The injunction is a part of a lawsuit introduced in opposition to the 2 corporations in Could by the state of California. The go well with alleges the ride-hailing corporations have “exploited a whole bunch of hundreds of California employees” by classifying their drivers as unbiased contractors quite than workers — thus violating California state law AB 5.  

This can be a growing story…





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Author

Dara Kerr