⁍ A California judge on Monday granted the state’s request for a preliminary injunction blocking Uber Technologies Inc (UBER.N) and Lyft Inc (LYFT.O) from classifying their drivers as independent contractors rather than employees.


⁍ The ruling is a defeat for the ride-hailing companies, as they defend against a May 5 lawsuit by state Attorney General Xavier Becerra.


⁍ California voters are expected in November to consider a ballot measure, Proposition 22, to classify app-based drivers as contractors.


– A victory for California drivers of Uber and Lyft. A San Francisco judge on Monday granted the state’s request for a preliminary injunction blocking the ride-hailing companies from classifying their drivers as independent contractors rather than employees, the Los Angeles Times reports. According to Reuters, San Francisco Superior Court Judge Ethan Schulman ruled that the companies had “prolonged and brazen refusal” to comply with state law, which requires companies to classify workers as employees if they controlled how workers did their jobs, or the work was part of their normal business. The judge said the plaintiffs showed an “overwhelming likelihood” they could prove Uber and Lyft classified drivers illegally. “These harms are not mere abstractions; they represent real harms to real working people,” Schulman wrote. The judge delayed enforcing his order by 10 days to allow appeals, which Lyft said it will pursue. “Drivers do not want to be employees,’ Lyft said in a statement. “Ultimately, we believe this issue will be decided by California voters and that they will side with drivers.’ Uber did not immediately respond to requests for comment. Several hundred thousand “gig” workers, including many at ride-hailing companies and app-based food delivery services, are affected by AB5, which took effect on Jan. 1 and had broad support from organized labor. Schulman said the defendants’ argument they were not ‘hiring entities’ covered by AB5 ‘flies in the face’ of Uber’s claims in other litigation, and their ‘concerted effort’ to overturn the law.



Source: https://www.reuters.com/article/us-uber-california/judge-blocks-uber-lyft-from-classifying-drivers-as-contractors-in-california-idUSKCN2562J6