Tags: Financial Markets | uber | lyft | ride sharing | employee | contractor | benefits

Uber, Lyft Required to Classify Drivers as Employees

the uber logo in black with white lettering
(Thein Zaw/AP)

By    |   Monday, 10 August 2020 09:09 PM

Uber and Lyft will now have to classify its drivers as employees rather than contractors, a judge in the San Francisco Superior Court ruled.

The ruling also said drivers are entitled to benefits California employees receive, since the two companies are based in the state. Those benefits include a minimum wage, health insurance, paid rest periods, compensation for overtime work, and reimbursement for the cost of driving while working.

"Our state and workers shouldn't have to foot the bill when big businesses try to skip out on their responsibilities," California Attorney General Xavier Becerra told The Hill. "We're going to keep working to make sure Uber and Lyft play by the rules."

"It's this simple," county Judge Ethan Schulman wrote. "Defendants' drivers do not perform work that is 'outside the usual course' of their business. Defendants' insistence that their businesses are 'multi-sided platforms' rather than transportation companies is flatly inconsistent with the statutory provisions that govern their businesses as transportation network companies, which are defined as companies that 'engage in the transportation of persons by motor vehicle for compensation.'"

Uber and Lyft are likely to appeal the decision. An Uber representative said the state of California would make it more difficult to enter the job market at a time when the coronavirus pandemic has caused unemployment to rise.

"When over 3 million Californians are without a job, our elected leaders should be focused on creating work, not trying to shut down an entire industry during an economic depression," the representative told The Hill.

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Uber and Lyft will now have to classify its drivers as employees rather than contractors, a judge in the San Francisco Superior Court ruled.
uber, lyft, ride sharing, employee, contractor, benefits, california
255
2020-09-10
Monday, 10 August 2020 09:09 PM
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