Uber under threat after bombshell court ruling

Andrew Cummings
October 24, 2020

Uber has sent out in-app notifications to drivers in recent weeks, stating that it would only be able to hire 30pc of them as employees if the new rules were imposed on them, the Wall Street Journal reported.

More specifically, a report from Washington Post reveals that drivers claim Uber violated their employment rights and the company got involved in what is being described as " illegal political coercion.

The battle over Uber and Lyft drivers' status saw a significant development Thursday.

A California appeals court unanimously ruled that both companies must reclassify their drivers as employees in the state. "But these adjectives perhaps say more about the reach of modern technology and the scale of today's technology-driven commerce than they do about the order itself". "It is broad in scope, no doubt, but so too is the scale of the alleged violations". Uber and Lyft filed an appeal, threatening to leave the state.peals court judges ruled Uber's and Lyft's misclassification irreparably harmed drivers because they missed out on employee benefits as independent contractors. The law would thus force these firms to offer job protections and other benefits to their workers.

Lyft and Uber in a statement said they were considering all legal options, including an appeal.

Gig Workers Rising, an organization representing some drivers, called the court's decision a huge victory.

Uber and Lyft were less happy with the appellate court's decision.

"This ruling makes it more urgent than ever for voters to stand with drivers and vote yes on Prop. 22", Lyft said, referring to the November 3 ballot measure, which would repeal AB5 and provide drivers with more limited benefits.

Together, the two companies have more than 400,000 drivers in California. The appeals court still has to transfer jurisdiction of the case back to the lower courts, which may take a few months, and the stay on the injunction will expire 30 days after that.

The companies sponsored Prop 22 in response to state lawmakers' passage of AB5 past year, the legislation that aimed to usher in minimum wage and health care requirements for gig workers including gig drivers.

The law, in effect since January, mandates that the companies treat their drivers in California as employees instead of independent contractors.

Uber and Lyft issued statements noting that the ruling doesn't take immediate effect and urging voters to approve Proposition 22.

Other reports by iNewsToday