UBER is warning that if the courts continue to uphold the outrageous anti-contractor, anti-business law passed last year in California, forcing them to make all of their drivers employees, they may end up halting their service in leftist state:
Here’s more from CBS Los Angeles:
The head of ride-sharing giant Uber Wednesday said the company could temporarily halt service in California in response to the gig worker law which took effect in January and was upheld by a judge earlier this week.
In an interview Wednesday, Dara Khosrowshahi told CNBC that if the company’s court appeal fails, Uber will be forced to temporary shut down.
“If the court doesn’t reconsider, then in California, it’s hard to believe that we’ll be able to switch our model to full time employment quickly,” Khosrowshahi said. “So I think Uber will shut down for a while.”
On Monday, a federal judge ruled that Uber and Lyft must classify their drivers as employees rather than independent contractors.
The ruling was in response to a lawsuit brought by several city attorneys and California Attorney General Xavier Becerra, which alleged that the companies violated Assembly Bill 5 (AB 5) and were misclassifying drivers’ employment statuses to prevent them from receiving proper compensation and benefits.
Both Uber and Lyft said they will appeal the judge’s ruling, which is scheduled to take effect in 10 days.
I think the reason Uber is saying the shutdown would be temporary is because voters will get the last word on this, as they decide in November whether to keep this outrageous law or to dump it. It’s called Prop 22 and it will be their last hope if the courts continue to uphold the law.
If the people decide to keep the law in November, I think Uber will end up pulling out completely rather than making over 100k drivers employees of the company.