San Francisco Court Orders Uber And Lyft To Hire Drivers Officially
The San Francisco Supreme Court ordered taxi service Uber Technologies and Lyft to classify drivers as their employees, the Washington Post reports. This decision is a response to a lawsuit by a group of California prosecutors.
The plaintiffs accused Uber and Lyft of violating the state law on independent contractors, which prescribes certain conditions for companies belonging to the so-called free earnings economy (gig economy). Independent contractors, in particular, cannot perform work that is part of the company's core business.
Uber and Lyft claim that they are not the transport companies, but developers of platforms for ordering taxis.
"If this argument is accepted, most fast-growing sectors that rely heavily on technology will be able to deny many workers the basic protection that state labor and employment laws guarantee them with impunity," judge Ethan Shulman said.
The court delayed the decision's entry into force for ten days so that the companies would have time to appeal it.
Uber spokesman Noah Edwardsen, commenting on the decision, said that most drivers want to work independently and that the company has already significantly changed the app so that its work complies with state laws.
In January, Uber set a cap on the Commission that the company receives from rides in California, due to the new law taking effect.
Lyft also said that drivers do not want to have the status of employees of the company.
Uber attracts more than 200 thousand drivers to work in California, Lyft - 325 thousand.
In May, the companies conducted an online survey of 734 drivers in the United States. 71% of drivers surveyed said they want to have the status of independent contractors, writes the WSJ.