Court orders Uber, Lyft to classify drivers as employees
Ride sharing apps Uber and Lyft must classify drivers as employees rather than independent contractors.
A California appeals court upheld an earlier ruling that considers drivers as employees of each firm under the AB5 law which came into force at the beginning of the year.
The state law says workers can only be independent contractors if they are able to conduct other work outside a company’s core business.
The ruling means Uber and Lyft would potentially be forced to pay minimum wage, overtime, and sick leave.
Both have threatened to pull out of Californnia if forced to do so.
"Uber and Lyft have used their muscle and clout to resist treating their drivers as workers entitled to those paycheck and benefit protections," California Attorney General Xavier Becerra said.
The two companies have 30 days to comply once the appeals process is fully exhausted.
However they are backing the Proposition 22 ballot on Election Day which gives Californians a chance to vote of the status of gig economy workers.
That may be the last opportunity to overturn it.
Written by Ray Montgomery, US Editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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