The state argues that by classifying their drivers as contractors, Uber and Lift deprive workers of the benefits they are entitled to under a law that came into force Jan 1, known as Assembly Bill 5 or AB-5. That companies can do this. Only treat those workers as independent contractors if they are free from company control and operate outside the company’s core business.
The reclassification of their workers would represent a radical shift forced on two occupations, with a large fleet of drivers treating them as independent contractors and not giving them the benefits they would be entitled to as employees, such as overtime, overtime, paid sick leave and unemployment. Insurance.
The ruling prompted companies to appeal. But Associate Court of Appeal Judge John Streeter wrote in his ruling Thursday that the restraining order banning Uber and Lift from classifying their drivers as independent contractors is valid.
“It is wide in space, no doubt, but so is the extent of the alleged violations,” he wrote.
In a statement following the verdict, Attorney General Xavier Besera said, “Uber and Lift have used their tissues and cl used to resist the treatment of their drivers, who are entitled to payroll and benefit protection.” “It’s time for Uber and Lift to play by the rules.”
“The ruling urges voters more than ever to stand with drivers and say yes to Prop. 22,” Lift spokeswoman Julie Wood said in a statement to CNN Business on Thursday.
Uber also noted in its statement the vote on Prop 22 that if the measure is not passed, “ridershare drivers will continue to work as independent contractors, firing thousands of Californians and possibly stopping riding. Most of the state.” In part. ”
Last month, the CEOs of both companies told the California Court of Appeals that they plan to comply with the law if the lower court order is upheld and if Prop.22 fails.
“Such an implementation could shut down Riders operation in all or some parts of California,” wrote Loft CEO Logan Green.
– Jill Disease contributed to this report.
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