Updated: Jan 12
Uber and Lyft will no longer be suspending services in California on Thursday at midnight. After, an appeals court judge in California blocked an order that required Uber and Lyft to classify their drivers as employees.
"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 Uber spokesperson Noah Edwardsen in a statement.
While the legal decision on Thursday buys the companies more time, they both still have a deadline of September 4, 2020. Where the CEOs of both companies must submit sworn statements with "implementation plans" on how they will comply with the law within 30 days if the court should uphold the earlier injunction order and if the ballot initiative does not pass. Oral arguments are scheduled for October 13, 2020.
"While we won't have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers," said Lyft spokeswoman Julie Wood.
Both Uber and Lyft are urging California residents to vote yes on Proposition 22. A bill that would exempt drivers for app-based transportation and delivery companies from being considered employees.