Judge Orders Uber, Lyft to Stop Classifying Drivers as Independent Contractors
A California judge issued a preliminary injunction on Monday requiring Uber and Lyft to stop classifying their drivers as independent contractors, and potentially setting the stage for a major shift in their business models.
Judge Ethan Schulman of San Francisco Superior Court granted a 10-day stay before the preliminary order takes effect. If the order is upheld, Uber and Lyft could be required to reclassify drivers as employees eligible for certain benefits and protections, rather than as contractors who work for themselves.
Uber shares fell 1.6% and Lyft shares fell 1.9% on the news.
Judge Schulman opined that Uber and Lyft use "circular" reasoning in arguing that their tech developers are employees, while their drivers are not.
https://www.msn.com/en-us/money/companies/judge-orders-uber-lyft-to-stop-classifying-drivers-as-independent-contractors/ar-BB17NRU3?li=BBnbfcN&ocid=DELLDHP