The dispute in California: Uber and Lyft reach of the law-delay in driver Status

The dispute in California
Uber and Lyft reach of the law-delay in driver Status

The car service mediator Uber and Lyft have practically reached a last-Minute postponement in the implementation of a law in California, according to which the drivers as employees and not as independent contractors must be treated.

Previously, Lyft had already announced, in the U.S. state of suspend to midnight the operation, because then the new rules would apply. Also, Uber had made a stop in view.

A court of appeal linked the postponement but with conditions. First of all, Uber and Lyft have to agree to an accelerated appeals procedure. Then the companies must heads up to 4. September personally guarantee that there are plans for the implementation of the act within 30 days. These plans are to be used, if the court rejects the opposition – or one of the company desired exception in the case of the California electorate falls through. An oral hearing in the appeal was on the 13. October set.

For Uber and Lyft, it was closely following the decision of a judge, that on such platforms, active drivers need to be treated in the state in accordance with a law of 2019 as an employee. The injunction should take effect on Friday in force. The company also hopes that in November the massively supported “Proposition 22” is adopted, which contains an exception to the law for transport service intermediaries.

The business of Lyft and Uber was recently heavily affected by the Corona-crisis. Especially for Lyft California is a very important market: the Case of the smaller Uber-rivals, 16 percent of all trips take place there.