A California decide has granted Uber and Lyft an emergency reprieve from an order requiring them to deal with their drivers as staff. The businesses had been dealing with a Thursday deadline to adjust to the order. Earlier at the moment, Lyft introduced that it might be pressured to close down within the state at midnight tonight.
Lyft stated it was being pressured to close down its California operations by a 2019 California regulation, AB 5, that forces ride-hailing corporations to deal with their drivers as staff somewhat than impartial contractors. Uber had warned that it was prone to do the identical if the courts did not delay enforcement of the regulation.
“This isn’t one thing we needed to do, as we all know hundreds of thousands of Californians depend upon Lyft for day by day, important journeys,” Lyft wrote. Nonetheless, the corporate stated, the brand new regulation would “necessitate an overhaul of your complete enterprise mannequin—it’s not a swap that may be flipped in a single day.”
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