Uber and Lyft threaten to suspend service in California if forced to reclassify drivers as employees

Updated: Jan 12

In response to an order to classify drivers as employees by a California superior court judge. Uber and Lyft have said they will shut down operations if the courts uphold the decision.

In an interview with Stephanie Ruhle on MSNBC Uber CEO Dara Khosrowshahi said, "Uber would have to shut down in California temporarily if a court doesn't overturn a recent ruling requiring them to classify drivers as employees.

In an earnings call with investors Lyft co-founder and President John Zimmer said they would shut down operations in California if forced to classify drivers as employees.

Both companies have ten days to file an appeal. However, if the appeal should fail both companies would most likely suspend operations in California until November when voters will have a chance to vote on Proposition 22. That would exempt drivers for app-based transportation and delivery companies from being considered employees.



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