Judge Orders Uber, Lyft To Classify Drivers As Employees Under California Law

A judge in California granted a preliminary injunction on Monday requiring major ride-hailing companies Uber and Lyft to classify their drivers as employees, rather than as independent contractors which would mean the companies have to provide them with additional benefits.

In the ruling , the San Francisco judge accused the companies of a prolonged and brazen refusal to comply with California law, saying it was high time that they face up to their responsibilities to their workers and to the public.

Californias Assembly Bill 5, signed into law last year and in effect since January, clarified the conditions under which workers should be considered employees, and therefore entitled to benefits like a minimum wage, unemployment and disability insurance, a right to form a union and more.

Uber and Lyft have been fighting the measure. The companies bottom lines will be dramatically affected if thousands of drivers are reclassified as employees and entitled to benefits like overtime pay or paid sick leave and family leave.

Mondays injunction was granted as part of a lawsuit by California Attorney General Xavier Becerra, filed in May against Uber and Lyft for not reclassifying their drivers as employees under the states new law.

However, the injunction will be stayed for 10 days, during which time the companies can appeal the decision. Both companies said in statements Monday that they plan to file immediate appeals.

#BREAKING: the court ruled that Uber and Lyft must put a stop to driver misclassification while our litigation continues.

Our state and workers shouldnt have to foot the bill when big businesses try to skip out on their responsibilities. pic.twitter.com/zGnNBj3mDA

Xavier Becerra (@AGBecerra) August 10, 2020","type":"rich","meta":{"author":"Xavier Becerra","author_url":"https://twitter.com/AGBecerra","cache_age":86400,"description":"#BREAKING: the court ruled that Uber and Lyft must put a stop to driver misclassification while our litigation continues.Our state and workers shouldnt have to foot the bill when big businesses try to skip out on their responsibilities. pic.twitter.com/zGnNBj3mDA Xavier Becerra (@AGBecerra) August 10, 2020\n\n","options":{"_hide_media":{"label":"Hide photos, videos, and cards","value":false},"_theme":{"value":"","values":{"dark":"Use dark theme"}}},"provider_name":"Twitter","thumbnail_height":605,"thumbnail_url":"https://pbs.twimg.com/media/EfFlI0IU8AAjktT.png:large","thumbnail_width":1150,"title":"Xavier Becerra on 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#BREAKING : the court ruled that Uber and Lyft must put a stop to driver misclassification while our litigation continues.

Our state and workers shouldnt have to foot the bill when big businesses try to skip out on their responsibilities. pic.twitter.com/zGnNBj3mDA
Xavier Becerra (@AGBecerra) August 10, 2020

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Uber and Lyft have also put tens of millions of dollars toward a statewide ballot initiative for California voters to decide if the companies can essentially exempt their drivers from the legislation. The companies claim the new law doesnt allow them to provide flexibility to drivers to choose their schedules and hours.

Californias attorney general insists this is not true.

During this global pandemic, its even more important for drivers to get access to protections like unemployment insurance, San Francisco City Attorney Dennis Herrera said in a statement. His office is part of the suit against Uber, along with city attorneys from San Diego and Los Angeles. There is no rule that prevents these drivers from continuing to have all of the flexibility they currently enjoy. Being properly classified as an employee doesnt change that.