California Court: Uber and Elevator Drivers in the State will be Considered Employees of the Companies
The companies currently employ their drivers as independent contractors and the increasing legal pressure on them to reclassify their employees in the country comes at a time of uncertainty for both under the influence of the Corona.
A California court yesterday (Monday) ordered Uber and Lift to reclassify their drivers in the state as workers, in what constitutes a further escalation in the legal battle over a new law in the state that greatly affects the on-demand services economy. Companies were given ten days to appeal the decision before it went into effect.
Uber and Lift currently employ their drivers as independent contractors. The growing legal pressure on companies to reclassify their employees in the country comes at a time of uncertainty for both. Uber and Lift continue to struggle with the effects of the plague, which has cut demand for their travel-sharing business significantly. Both companies laid off workers and have a history of sharp losses.
According to the court ruling, “Now that the defendants’ activity is at an all-time low, it may be the best time for them to change their conduct so that they comply with California state laws, and without causing far-reaching negative effects on their drivers.” In response to the decision, Lift spokeswoman Julie Wood said “drivers do not want to be employees and intend to immediately appeal the ruling and continue to fight for drivers’ independence.”
Yesterday’s decision comes after California Attorney General Javier Control and a coalition of attorneys applied to the court for a preliminary injunction in late June that would force the two travel sharing companies to comply with California State law known as AB-5. The order is part of a lawsuit filed in May that claims companies incorrectly classify their drivers in a way that violates the law. Under the law, which went into effect on January 1, companies must prove that their employees are free from the company’s control, and that they carry out their work outside its normal business path, in order to be able to classify employees as self-employed and not employees.
California Court: Ube Drivers will be Considered Employees of the Companies - /10
California Court: Uber and Elevator Drivers in the State will be Considered Employees of the Companies.