Uber and Lyft previously discussed suspending their operations in California – and, Lyft, specifically, threatened to suspend their operations as of 11:59 p.m. Pacific Standard Time, yesterday, Thursday, August 20, 2020. However, this never came to fruition! At the eleventh-hour, the California Court of Appeal stepped in and issued an emergency stay to the recent order requiring Lyft and Uber to treat their drivers as employees instead of independent contractors. What does this mean though? It means that, for now, Lyft, Uber, and other ride-sharing companies may continue to operate as is.
You may be asking yourself; how did we get here? The controversy surrounding Lyft and Uber derives from the recent preliminary injunction issued in San Francisco Superior Court by Judge Ethan Schulman. We wrote about that injunction and the Uber & Lyft Saga last week.
While the legal battle for Uber and Lyft is far from over, Uber and Lyft are hopeful that a current ballot measure to be voted on this November will render the current legal action moot. In fact, Uber and Lyft have contributed millions to this ballot measure. Why is this ballot measure so important to Uber and Lyft, you ask? The ballot measure is named Proposition 22, and under Proposition 22, generally, Uber, Lyft, and other app-based ride and food delivery services will be exempted from every employers’ nightmare: AB5. 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.