Uber and Lyft have just been granted an emergency injunction that would have forced them both to turn all of their contract drivers into employees:
WSJ – A California appeals court granted an emergency stay to Uber Technologies Inc. and Lyft Inc. Thursday, pausing a ruling that required the ride-hailing companies to reclassify their drivers as employees by Friday.
The reprieve means both companies can continue operating in the state while their appeal is considered. Both companies had said they would be forced to suspend operations in California if a stay wasn’t granted.
Both Uber and Lyft had just announced a few hours ago that they would be shutting down all operations in California as of midnight tonight if they didn’t get an injunction. That’s when the previous ruling against them would have gone into effect:
Uber and Lyft say they will shut down their California operations if a new law goes into effect overnight that would force both companies to classify their drivers as employees. They're hoping a court blocks the law. https://t.co/D8FhvkCBpu
— The Associated Press (@AP) August 20, 2020
It’s not a permanent injunction, but it does give both companies some breathing room to continue to fight this absurd law. Also, remember that this Gig law will be on the ballot in November, so that is definitely something to watch. In fact you can bet both Uber and Lyft will be heavily campaigning against the law as November approaches.