08.24.20 - In an earlier issue of the Brookfield Brief, we discussed the lack of California love Uber and Lyft were feeling as it looked as if they would have to suspend operations in California after an order was passed that would have forced them to reclassify their drivers in the state as employees. The two companies have now narrowly avoided shutting down their ride-hailing services in the state after an appellate court granted the companies a temporary reprieve by delaying the order (for now).
While the legal decision buys the companies some time, they do have a deadline hanging over their heads still to reclassify their drivers as employees rather than independent contractors. A referendum is on the slate to be voted on in November, however, to decide whether the two companies should be exempt from the law.
"We are glad that the Court of Appeals recognized the important questions raised in this case, and that access to these critical services won't be cut off while we continue to advocate for drivers' ability to work with the freedom they want," said an Uber spokesperson in a statement the company released.
As the deadline approached, the companies were bracing for a shutdown of operations in the state. Lyft said last week that it would suspend service in the state by end of day if an appeals court didn't grant its request for a delay. Uber said earlier this week it would also suspend service by midnight Thursday if not granted a similar delay on the order.
Source: New York Times