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Ride-Hailing Services Shutdown in California Averted

Uber and Lyft were set to cease operations in California, but an appeals court has granted them a reprieve and the controversy continues.
August 24, 2020, 10am PDT | Camille Fink
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Last week, Uber and Lyft were threatening to shut down their California operations after a San Francisco Superior Court judge ordered the companies to reclassify independent contracts as employees. The Thursday deadline upheld the stipulations outlined in Assembly Bill 5, which the California Legislature passed last year.

"But hours before the ride-hailing blackout was set to begin, an appeals court granted Uber and Lyft a temporary reprieve, allowing them to continue operating while the court weighs their appeal. Oral arguments in the case are set for mid-October," writes Kate Conger.

While the withdrawal from the state is on hold, a final decision on the issue could come months down the road. "An appeals court is weighing the companies' requests to overturn a judge’s order to employ drivers, but it is not clear when the court will issue a ruling. The court has ordered Uber and Lyft to submit plans for hiring employees by early September, in case the court does not decide in their favor,” says Conger.

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Published on Thursday, August 20, 2020 in The New York Times
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