Uber Technologies Inc and Lyft Inc are preparing to suspend their ride-hailing services in California beginning on Friday morning unless an ...
REUTERS: Uber Technologies Inc and Lyft Inc are preparing to suspend their ride-hailing services in California beginning on Friday morning unless an appeals court rules at the last minute they cannot be forced to treat their drivers as employees, rather than independent contractors.AdvertisementUber in a blogpost said it would have to temporarily shut down unless the appeals court intervenes.
A judge on Aug. 10 ruled that Uber and Lyft had to comply with the law beginning on Friday, forcing them to treat their ride service drivers as employees entitled to benefits including minimum wage, sick pay and unemployment insurance. The shutdown comes at a time when demand for rides has plummeted amid the coronavirus pandemic, with California among the U.S. states with the slowest recovery, according to the companies.
Uber and Lyft say the vast majority of their drivers do not want to be employees. The companies say their flexible on-demand business model is not compatible with traditional employment law and advocate for what they call a"third way" between employment and contractor status.
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