Uber and Lyft are ordered by court to treat driver as employee

by Stock Catalog

On August 10, 2020, the Supreme Court of California issued a provisional injunction ordering Uber and Lyft, which deploy vehicle dispatch services, to 'treat the driver as an employee rather than as a self-employed person.'

Attorney General Becerra Secures Early Court Victory in Fight to Protect Workers Against Unlawful Employee Misclassification by Uber and Lyft | State of California-Department of Justice-Office of the Attorney General
https://oag.ca.gov/news/press-releases/attorney-general-becerra-secures-early-court-victory-fight-protect-workers

Uber and Lyft ordered by California judge to classify drivers as employees-The Verge
https://www.theverge.com/2020/8/10/21362460/uber-lyft-drivers-employees-california-court-ruling

Highly convenient, 'because it can have a flexible labor gig economy is referred to as a', but is Uber and Lyft of dispatch services has been rapid growth against the background of the support of the passengers and the driver both, in recent years, ' fuel costs It is exploitative because the maintenance costs of cars and vehicles are passed on to the driver .” Therefore, in the state of California in the United States, where Uber and Lyft are headquartered, in September 2019, the California Legislative Bill No. 5 , commonly known as ``AB5,'' which clearly defines the criteria for treating drivers such as Uber as employees rather than self-employed people. Has passed Parliament.

A bill that regulates ``business that undertakes jobs on the Internet'' such as Uber passed-GIGAZINE

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After that, AB5 was signed by Governor Gavin Newtham and went into effect as scheduled from January 1, 2020 in California. Under the AB5, California Attorney General Xavier Becerr said on May 5 that 'Uber and Lyft still classify drivers that should be treated as employees in the context of AB5 as self-employed'. Suing. In response, the Supreme Court of the State of California issued a preliminary injunction on August 10 to both Uber and Lyft, focusing on 'treating drivers as employees.'

'The work of the defendant Uber and Lyft's driver is not considered 'out of the ordinary work' that he does not have to treat as an employee,' said Judge Ethan Shulman of the California Supreme Court. 'The defendants' allegation that it is a multi-faceted platform, not a shipping company, is completely inconsistent with the provisions of the law that defines shipping companies as 'paying transportation of personnel by motor vehicle,'' Supported the plaintiffs' complaint.

Temporary suspension orders could force Uber and Lyft to make major service changes or suspensions. The California Supreme Court has set a 10-day grace period for the preliminary injunction in preparation for both companies to appeal, but according to the news site The Huffington Post, both companies have announced a statement to appeal the same day . ..

Mike Robinson, who is a leader of the Mobile Workers Alliance organized by Californian drivers involved in the gig economy and himself a Lyft driver, said, ``This decision naturally makes California drivers long We have endorsed what we have said as a result of this.'

On the other hand, there are voices of opposition to the AB5 law and regulations, such as the California Trucking Association filed a lawsuit saying that 'employees hinder flexible working styles.'

Truck driver sue lawsuit against ``new law regulating business contracting business on the Internet''-GIGAZINE

A Uber spokesman told the ruling, “The majority of drivers want to work independently. The government leaders we have chosen have more than three million citizens looking for a job. In the meantime, we should focus on creating jobs, not shutting down the slumping industry.”

Lyft spokesman said, “The driver does not want to be an employee. We appeal immediately and continue to fight for the independence of the drivers. In the end, the issue is California voters. We believe that the voters are on the driver's side,' he said.