For those of you who are unaware of Uber’s and Lyft’s legal troubles, please take a moment to read Uber & Lyft: The Independent Contractor v. Employee Classification Saga Continues! and Uber and Lyft Will Continue to Operate in California (Temporarily)!.
But, for those of you who are up to date, Uber and Lyft have taken another legal hit – placing their future operations in California at risk. On the evening of October 22, 2020, a California appellate court ruled that Uber and Lyft, again, must classify their drivers as employees. In coming to that decision, the California appellate court found that neither Uber nor Lyft would suffer any “grave or irreparable harm by being prohibited from violating the law” and their respective potential burdens from a forced reclassification do “not rise to the level of irreparable harm.”
What does this mean for Uber and Lyft? According to an Uber spokesperson, it means that “if voters don’t say ‘Yes’ on Proposition 22, rideshare drivers will be prevented from continuing to work as independent contractors, putting hundreds of thousands of Californians out of work and likely shutting down ridesharing throughout much of the State.” If you are not familiar with Proposition 22, Proposition 22 is a ballot measure in California that generally, seeks to keep rideshare drivers and delivery workers classified as independent contracts. If passed, it will be the deciding factor in how Lyft and Uber classify their drivers in California.
Lawsuits, like the above, are quite common in California as a result of AB5 and can lead to severe monetary penalties for employers (just ask Uber and Lyft). To learn more about AB5 and to ensure that your employees are properly classified, contact the Employment Lawyers at Chauvel & Glatt.
The material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500. (photo credit: 123rf.com)
