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California Files Injunction To Force Uber And Lyft’s Compliance With AB5

California’s Attorney General, Xavier Becerra has announced that he’s filing a preliminary injunction against Uber and Lyft. The move will most likely escalate the battle over the heavily contended AB5 legislation.

 

The state wants both companies to classify the drivers as employees instead of their current classification as contractors. California had sued both Uber and Lyft in May 2020 after the companies failed to classify their drivers in accordance with the law which took effect in January 2020.

 

“It’s time for Uber and Lyft to own up to their responsibilities and the people who make them successful: their workers. Misclassifying your workers as ‘consultants’ or ‘independent contractors’ simply means you want your workers or taxpayers to foot the bill for obligations you have as an employer… That’s not the way to do business in California,” Becerra said in a statement.

 

The injunction would force the companies to reclassify their drivers as employees in a matter of weeks. Meanwhile, Uber and Lyft are accusing Becerra of trying to shut down ride-hailing in the state.

Also read:
– Uber And Lyft Drivers Sue New York Over Unpaid Unemployment Benefit
– Project Luigi: Uber’s Response To Its Californian AB 5 Law Problems
– Uber Announces Massive Employee Layoffs Globally, CEO To Get No Pay

They say hundreds of thousands will be out of work if that happens. They also add that the other hundreds of thousands who rely on their services will be left with no alternative. This may see the cost of transportation go up in the state.

 

Classifying the workers as contractors means that they do not get minimum wage, overtime pay, health insurance, and sick leave.

 

A Lyft spokesperson says that California’s voters should be allowed to decide the issue. Lyft, Uber and other gig companies like Instacart, and DoorDash, are funding a $90 million ballot initiative. The effort is towards the November 2020 elections to counteract the effects of AB5.

 

“We believe the courts should let the voters decide. Trying to force drivers to give up their independence 100 days before the election threatens to put a million more people out of work at the worst possible time. It would be incredibly harmful to millions of people and the California economy to grant this motion 100 days before the voters decide, and we will oppose this motion,” the Lyft spokesperson said.

 

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Kolawole Awolope

Passionate about talking, passionate about talking tech.

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