Uber may have to temporarily shut down in California if it has to reclassify drivers, CEO says

Uber might shut down its app in California.

Angela Lang/CNET

Uber CEO Dara Khosrowshahi on Wednesday told MSNBC the ride-hailing app might should briefly shut down in California if it is compelled to start out classifying drivers as staff within the state. 

“If the courtroom would not rethink, then in California, it is arduous to consider we’ll be capable of swap our mannequin to full-time employment rapidly,” Khosrowshahi said in the interview.

This comes after a California judge on Monday issued an injunction that may drive Uber and Lyft to start out classifying their drivers as staff. The ruling is a part of a lawsuit against Uber and Lyft from Could that claims the businesses “exploited tons of of hundreds of California employees” by classifying their drivers as unbiased contractors, violating California’s new AB 5 law

Uber considers its drivers to be unbiased contractors, which suggests they pay for their very own bills, corresponding to gasoline, automotive upkeep and insurance coverage. Drivers additionally do not have advantages like medical health insurance and sick go away. 

Choose Ethan Schulman of the San Francisco Superior Courtroom wrote in his resolution that the injunction will not be enforced for 10 days, in order that Uber and Lyft have likelihood to attraction — one thing each firms stated they will do.

Uber did not instantly reply to a request for remark.

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Katie Conner