A California judge on Monday granted the state's request for a preliminary injunction blocking Uber Technologies Inc and Lyft Inc from classifying their drivers as independent contractors rather than employees.
FILE PHOTO: A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, U.S., May 13, 2020. REUTERS/Mike Blake
In a 34-page decision faulting the money-losing companies’ “prolonged and brazen refusal” to comply with state law, Schulman said the plaintiffs showed an “overwhelming likelihood” they could prove Uber and Lyft classified drivers illegally. Schulman said the defendants’ argument they were not “hiring entities” covered by AB5 “flies in the face” of Uber’s claims in other litigation, and their “concerted effort” to overturn the law in November.
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