As you know earlier this week it was said that Uber and Lyft had until August 20th to make all of their drivers actually employees in liberal California or face shutting down. Thursday they received an emergency stay from a judge.
Lyft and Uber will not suspend their ride-hailing services in California on Thursday at midnight, after a state appeals court ruled in their favor regarding an injunction against the companies. The move follows a court order in California that requires the companies to reclassify drivers as employees.
“While we won’t have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers,” said Lyft spokeswoman Julie Wood.
The Following is from earlier this week:
More insanity out of liberal Calinfornia, as it looks like more regulations and insane laws from the state may force both Uber and Lyft to shut down until the November elections.
The following is from The Verge:
Uber and Lyft rides in California? After a judge rejected the companies’ effort to delay an order that they classify drivers as employees, it seems inevitable. Uber and Lyft have until August 20th to comply with the order. But the companies have said they will need to go dark in the Golden State in order to retool their business.
The judges may not have the last word. Uber and Lyft are counting on California’s notoriously mercurial voters to help them circumvent AB5, which went into effect in January and makes it more difficult for companies to use independent contractors. Uber and Lyft built their respective businesses on the concept of using freelance drivers who aren’t eligible for traditional benefits like health insurance and paid leave.
Earlier this year, the companies, along with DoorDash, raised nearly $100 million to place a question on the November ballot. They succeeded, and this fall, voters will be asked to permanently classify ride-hailing drivers as independent contractors. The measure, called Proposition 22, also directs the companies to adopt certain labor and wage policies that fall short of traditional employment.
To accomplish their political goals, ridesharing companies are turning to their customers. Lyft emailed its customers urging them to vote yes on Prop 22 and added pro-Prop-22 messages to its app. Uber has yet to do the same, but the company has shown a flair for using dramatic tricks to turn its customers into political allies. In 2015, the company added a pop-up feature in its app to troll the mayor of New York City and encourage the company’s customers to pressure him to back off on proposed legislation that could seriously hamper Uber’s growth efforts in the city. It worked, and Mayor Bill de Blasio relented.
You can read more from our friends at The Verge.
