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Uber and Lyft are losing their appeal, ordered again to identify drivers as employees
Uber and Lyft were ordered by the California Court of Appeals late Thursdaay to identify their drivers as workers. In a 74-page opinion , the court upheld the injunction issued on 10 August requiring Uber and Lyft to recognize their drivers as employees within 30 days.
But it is unlikely that this decision will come into force before California voters have a chance to take a vote, Prop 22, which would exclude Uber, Lyft and other gig economy firms from state law, making it more difficult to identify employees as independent contractors.
The injunction shall not come into force until 30 days after the decision on the appeal has been made. Even, it's a sign that Uber and Lyft have more and more riding on Prop 22, which the companies have invested $186 million to get through.
Despite this, elected authorities and drivers' associations praised the decision of the court. It is a big win for the drivers, said the anti-Prop 22 Gig Staff Rising in a tweet. San Francisco City Attorney clearly tweeted, Drivers are workers.
Uber and Lyft also said that they would be forced to leave California and were forced to identify the drivers as employees. Uber's CEO also expected a sharp rise in fare rates and fewer drivers would be allowed on the platform if Prop 22 failed.
In different comments, Uber and Lyft argued that they were considering their options for appeal, which may include bringing the case to the Supreme Court of California. Today's decision means that if the voters don't say yes to Proposition 22, rider drivers will be stopped from continuing to operate as independent contractors, putting hundreds of thousands of Californians out of operate and possibly shutting down ride-sharing across most of the state, Uber said.
A Lyft spokesperson said, This ruling makes it more important than ever for voters to stand with the drivers and vote yes to Prop. 22.
The fight over Prop 22 has been raging in recent weeks, as the poll shows the electorate deeply divided over whether Uber and Lyft should regard drivers as employees. The airwaves were covered with pro-and anti-prop 22 ads (mostly pro, considering Uber and Lyft 's spending advantage over their opponents). A group of Uber drivers have sued the company today, alleging that the "constant dam" of messages in its app violates workers ' rights. Drivers are demanding up to $260 million in fines.
The decision of 10 August came in response to a preliminary injunction filed by California Attorney General Xavier Becerra in the form of a lawsuit alleging that the companies are in breach of state law AB5, which entered into force on 1 January.
The legislation enshrines the so-called "ABC test" to decide whether someone is a contractor or an employee, which generally makes it more difficult for businesses like Uber and Lyft to identify employees as independent contractors.
Uber and Lyft claim that most drivers tend to be autonomous because of their versatility and ability to schedule their own hours. However, trade unions and elected officials argue that this deprives them of conventional benefits , such as health insurance and workers ' compensation, and requires drivers to bear all the costs of their jobs.
Uber and Lyft, along with DoorDash, are financing a vote bill, Proposition 22, which would allow them to withdraw from AB5 and continue to classify their employees as independent contractors. A recent Uber-funded poll showed that the majority of drivers — as well as voters — supported the initiative.
