Thursday, August 20, 2020

Lyft has announced they suspending service in California as of midnight tonight. Uber is said to be close to making the same call. San Diego and San Jose Mayor urged an appeals court to stay an injunction that they said would lead to a statewide shutdown of Uber and Lyft's operations starting tomorrow

San Francisco-based ruled in favor of California Attorney General, and the city attorneys of San Diego, Los Angeles and San Francisco in their lawsuit alleging Uber and Lyft have misclassified their drivers, preventing them from receiving "the compensation and benefits they have earned through the dignity of their labor," such as the right to minimum wage, sick leave, unemployment insurance and workers' compensation benefits.

So, the rideshare companies lost in court regarding Assembly Bill 5, with the judge ruling the companies must classify their drivers as employees rather than independent contractors in order to continue in business.

The San Diego and San Jose Mayor's joint statement called for a stay on the injunction, citing economic impacts to California's gig workers, and a loss of transportation options and delivery services for critical resources like food and medical care for California residents.

Uber and Lyft are also working to combat AB 5 by sponsoring Proposition 22, a ballot initiative that, if approved by voters in November, would allow rideshare drivers to work as independent contractors.

Assembly Member Lorena Gonzalez, who authored the bill, said following the ruling, "Uber and Lyft have been fighting tooth and nail for years to cheat their drivers out of the basic workplace protections and benefits they have been legally entitled to. They have enriched their executives and their bottom line, while leaving taxpayers on the hook to subsidize the wages and benefits of their drivers."

https://www.nbcsandiego.com/news/local/san-diego-mayor-says-rideshare-operations-will-end-in-calif-on-friday-if-appeals-court-doesnt-stay-injunction/2388716/

3 comments:

  1. I hope it happens. It will be fun to watch.

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  2. I lived in California half my life and don't actually think much of the politics of the state these days, but I do side with the opinion that Uber and Lyft drivers need to be classified as employees. It's a risky job many times and they need the same benefits afforded to any worker that deals with risks, especially nowadays especially workers compensation. Yes it will raise the price of Lyft and Uber services but that's a small price for consumers to pay for the benefit of more safe and quality service.

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    Replies
    1. In fantasy land maybe, because in the real world the working class will be jobless and the hipsters will have to drive. Don't know which outcome is the worse...

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