The businesses’ exit from the Golden State will leave hundreds of thousands of drivers unemployed and millions of Californians chasing an expensive cab. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Uber CEO says its service will probably shut down temporarily in California if it’s forced to classify drivers as employees. But if their appeal fails, Uber may have to close up shop in California, Khosrowshahi said. The ride-hailing giant is currently appealing against a Supreme Court judgment in the state that requires the company to recognise its drivers as employees and give them employment protections as a result. Uber and Lyft have just over a week left to appeal the injunction. Oral arguments are scheduled for October 13, 2020. But labor unions and elected officials contend this deprives them of traditional benefits like health insurance and workers’ compensation. In it, the company states: Because Uber will almost certainly need to shut down the Rides app while it builds these departments and systems, millions of drivers who use the app to earn vital income will likely lose that opportunity the day the injunction goes into effect—and that source of income will be lost for months, at least. Each coupled those warnings with a push for a. Uber may shut down its operations in California, one of its largest markets in the US, if it is forced to classify drivers as employees, the company’s CEO Dara Khosrowshahi said on MSNBC Wednesday. "While we won't have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers," said Lyft spokesperson Julie Wood in a statement. Becerra later filed a motion for a preliminary injunction that could compel the ride-hailing companies to classify drivers as employees immediately. Earlier this week, Uber and Lyft were ordered by a California superior court judge to classify their drivers as employees. All rights reserved. "If they can't figure it out, I'm confident other entrepreneurs will," he said. For months, the state of California and two leading ride-hailing companies, Lyft and Uber, have been ensnared in a bitter legal battle. SAN FRANCISCO — Uber and Lyft will continue operating in California after an appeals court issued a stay on an order that would have prompted the ride-hailing companies to shut down. Khosrowshahi made his comments in a television interview Wednesday on … Both companies now have five days to agree to … It may not help their cause Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Disclaimer. Thursday's order lays out new deadlines for the companies. Uber CEO Dara Khosrowshahi said Uber could shut down in California for months if a preliminary ... [+] injunction issued this week isn't reconsidered. When faced with tough legislation over the years, the companies have threatened to suspend their services, and sometimes followed through on it, riling up customers and drivers, and putting pressure on lawmakers. Legal ruling averts Uber and Lyft shutdown in California. By September 4, 2020, the CEOs of Uber and Lyft must submit sworn statements with "implementation plans" for complying with the law within 30 days if the court upholds the earlier injunction order and if the ballot initiative does not pass. Here … Uber and Lyft filed pleas for immediate stays to a California court of appeal, which granted them Thursday. With hours to go before the original deadline, the companies were bracing for a shutdown. Obviously, that lower court decision is being appealed. ': Rioter speaks to CNN reporter, Facebook blocks Trump through end of presidency, CNN speaks to Trump supporters about Trump's election lies, Google employee on unionizing: Google can't fire us all, AstraZeneca vaccine provides 'logistical convenience', Here's what the new stimulus package means for Americans, Covid relief bill extends aid to struggling Americans, 'Trolls' digital release was a first. Uber also alluded to shutting down its business in California in the motion it filed in court on August 10th. Uber CEO says its service will probably shut down temporarily in California if it’s forced to classify drivers as employees (CNBC) I Am the C.E.O. A reclassification of their workers would represent a radical shift forced on the two businesses. This Friday, Uber and Lyft are set to entirely shut down ride-sharing operations in California. All times are ET. A lower court judge has ruled that Uber and Lyft must consider all drivers as employees, including paying minimum wage and benefits. This time around. Uber and Lyft have both built up massive fleets of drivers by treating them as independent contractors. California represents a substantial chunk of both companies' businesses.

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