On Thursday, a California judge denied motions from Uber and Lyft, a prior order directing ridesharing to reclassify their contractors than full time Employees. This decision will take effect on August 20th what the companies had requested an extension of 10 days for an appeal.
“I am confident that the appeals court will be able to act very quickly when it is necessary. I am not convinced that there is a need to extend the 10 day stay. Both applications are rejected. ” said Judge Ethan Schulman at the San Francisco Superior Court hearing by Vice.
It looks like Ubers company tantrum fell on deaf ears. After this Schulman instructed on Monday that Uber and Lyft will reclassify their drivers, Over CEO Dara Khosrowshahi threatened to stop Operations in his home state if it is forced to give Driver the types of Basic services that are required by law by employees such as Overtime and unemployment insurance.
“Unless the court reconsidered, it’s hard to believe in California that we can quickly switch our model to full-time employment. So I think Uber will shut down for a while, ”said Khosrowshahi in one (n interview Wednesday with Stephanie Ruhle from MSNBC.
And Uber, probably would not be the only one: On one Revenue call it the same Day, Lyft President John Zimmer said the company will be too Suspension of services in California if this week The verdict was not overturned.
The two ride sharing agencies have repeated argued that such a drastic change in their business practices would be extremely costly, but it’s not like they haven’t had time to prepare for the transition. Monday’s decision forces them adhere to California Watershed Assembly Act 5, which legislators almost passed a a year ago At this point. The bill provides that “transportation network companies” like Uber and Lyft Stop misclassifying your workforce as an independent contractor when their driver lacks any self-determination that such Distinction includes and offer the same benefits and safeguards for workers.