Academic

COURT RULING COULD KILL UBER AND LYFT IN CALIFORNIA: Just days before Californians themselves were ?

By Ed Driscoll

COURT RULING COULD KILL UBER AND LYFT IN CALIFORNIA:

Just days before Californians themselves were set to decide on the matter, a state appeals court has ruled that app-based ride-sharing companies Uber and Lyft must comply with state law AB5 and classify all of their drivers as employees rather than contractors. The ruling raises the possibility that the companies will simply end operations in the state altogether, both having stated previously that their business model depends on the flexibility of using contractors.

The companies claim, and drivers often confirm, that the flexibility of contract work is key to their operations. Employers are required under federal and state law to schedule and track their employees? hours for overtime, unemployment, and other purposes. That?s not case with contractors, who are legally considered independent businesses.

Critics of the ride-sharing companies, such as California Gov. Gavin Newsom, claim that?s just a dodge to get out of paying overtime and complying with other workplace regulations. Labor unions have pushed for the drivers to be classified as employees, since contractors cannot join unions.

A three-judge state appeals court panel on Thursday agreed, rejecting the companies? arguments out of hand. The panel was in full crusader mode, calling the case a ?reminder that the foundation of interim injunctive relief lies inequity comes from Justice Ruth Bader Ginsburg, who was renowned for her expertise in procedure long before she became the national icon known as RBG.?

Like a wrecking ball, Lorena Gonzalez?s AB5 legislation continues to destroy California?s economy. And as ZZ Top would say, it could be bad and nationwide under a Biden administration: Majority of House Democrats Want to Put Freelancers Like Me Out Of Business.

Full post as published by Instapundit.com on October 26, 2020 (boomark / email).