A California appeals court on Tuesday listened to claims by lawyers for Uber Technologies Inc, Lyft Inc and the state of California. The case whether the state can accept their drivers as employees with their rights. That includes minimum wage, overtime pay, health insurance and unemployment insurance.
The case is part of a battle over the future of the so-called gig economy in California. In January, the state implemented a law making it harder for ride-hail, food delivery companies. Also other app-based companies to classify workers as independent contractors will be affected.
Uber and Lyft, along with Door Dash, Insta Cart and Post mates have collectively spent more than $184 million to write and support a ballot measure that would upset the state gig worker law, also known as AB5.
In May, California and the cities of Los Angeles, San Diego and San Francisco sued Uber and Lyft. That was for allegedly violating AB5 by refusing to re-group drivers. A California judge in August ordered the companies to recognize their drivers as employees within 10 days.
Before, The companies together threatened to leave the state and the ruling was put on hold by the court.
The attorneys said the law would cause irreparable harm to the state and its residents, Furthermore, the companies will be forced to redo their business models and cut thousands of part-time drivers from their job place.
Uber and Lyft – Compiled by: MK (Editor)