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Article

26 Oct 2020

Author:
Dara Kerr, CNet

USA: California court rules Uber & Lyft must classify drivers as employees, paving way for living wage, insurance & sick pay

“Uber and Lyft need to make drivers employees, appeals court rules” 23 October 2020

… [An] appeals court ruled Thursday evening that an injunction issued against the two ride-hailing companies over the status of their drivers was an appropriate measure.

The injunction … ruled that the ride-hailing companies must start classifying their drivers as employees in the state. The judge allowed the companies 10 days to appeal the ruling, which they did.

... The appeals court said … there was an "overwhelming likelihood" Uber and Lyft are violating California law … [that] requires some employers that use independent contractors to reclassify their workers as employees and provide more worker benefits.

"Not only is this a victory for the tens of thousands of Uber and Lyft drivers working to put a roof over their heads and food on the table, this ruling is about fairness, making it clear that these companies must stop shifting their costs onto the taxpayers while their CEO's profit," Mike Feuer, Los Angeles City Attorney, said in a statement.

… Uber, Lyft and other gig economy companies have sponsored a state ballot measure campaign with nearly $200 million to bring the issue to voters…

Julie Wood, a Lyft spokeswoman, said the appeals court ruling makes the vote on Proposition 22 "more urgent than ever." The company said it's considering other legal options, including an appeal to the California Supreme Court.

An Uber spokesman said ... "Rideshare drivers will be prevented from continuing to work as independent contractors…”