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Thursday, 22 October 2020

Uber and Lyft broke law by classifying drivers as contractors, court rules

Ruling deals blow to firms’ battle against AB5, which requires companies give California drivers minimum wage and benefits

A California appeals court has ruled that Uber and Lyft broke the law by misclassifying drivers as contractors rather than employees, a huge blow to the ride-hailing firms as they battle to protect their business model.

Uber and Lyft had previously threatened to shut down their services pending the decision, which would enforce a new labor law known as AB5. The law, which went into effect in January, requires companies to classify drivers as employees and provide them with a minimum wage and benefits.

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from The Guardian https://ift.tt/3oh2YAw

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