On Monday, San Francisco Superior Court Judge Ethan Schulman issued a preliminary injunction classifying California Uber and Lyft drivers as employees, not independent contractors. The Judge, using scathing language about ride-hailing companies, issued a 34-page order granting the Labor Commissioner’s request for a preliminary injunction, in light of the ride-hailing companies “prolonged and brazen refusal to comply with California law” namely AB5. This gig-work law that took effect in January, made it harder for companies to claim workers as independent contractors and has been highly criticized by many companies.
While the enforcement of the Judge’s order is not set to take effect until ten days from now, this gives Uber and Lyft plenty of time to appeal the decision. As we can see, this is not the end of the road on the debate of whether Uber and Lyft drivers are in fact, independent contractors. We will continue to see this debate until we have a final decision on this case. 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.