Friday, August 21, 2020

Uber, Lyft Get Stay On Injunction, Stay Online

Uber and Lyft has received a stay on an injunction late Thursday, staving off a complete shutdown of both of the services at midnight. An appeals court in California granted the two companies the stay, holding off the injunction which would have forced the two companies to reclassify all of its drivers in the state to employees. California had passed AB5, an attempt to force Uber and Lyft to treat its drivers as employees last year--but neither company has made any moves to comply with the law; on the other hand, AB5 has been widely criticized by non-Uber and Lyft associated independent contractors for making it impossible to work as a contractor rather than as an employee. Uber and Lyft have argued that any move to employ its drivers are against the preferences of its workers, and would require them to fundamentally change their business model.