Uber and lyft reach law suspension on driver statuses
Ride-hailing services uber and lyft have won a last-minute reprieve from a california law that requires drivers to be treated as employees rather than independent contractors.
Lyft had already announced that it would suspend operations in the u.S. State at midnight because the new regulations would then take effect. Uber also had a stop in sight.
But a court of appeal tied the deferment to conditions. First, uber and lyft must agree to an expedited appeals process. Then the company bosses had to wait until the 4th place. September personally assure that there are plans to implement the law within 30 days. These plans are to be used if the court rejects the appeal – or an exemption sought by the companies falls through with california voters. An oral hearing in the appeal was scheduled for 13. October set.
Things got tight for uber and lyft after a judge ruled that drivers active on such platforms must be treated as employees in the state under a 2019 law. The temporary restraining order was to take effect on friday. At the same time, the companies are hoping that in november "proposition 22", which contains an exemption from the law for driving service intermediaries and which they massively support, will be adopted.
Lyft and uber’s business has recently been massively impacted by the corona crisis. For lyft in particular, california is a very important market: for its smaller uber rival, 16 percent of all rides take place there.
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