San Francisco judge won’t stay order for Uber, Lyft drivers to be employees

2 A San Francisco Superior Court judge on Thursday declined to stay his preliminary injunction ordering Uber and Lyft to reclassify drivers as employees by Aug. 20. Judge Ethan Schulman on Monday had agreed to California's request to order the two ride-hailing companies to immediately change drivers' status to employees rather than independent contractors. He issued a preliminary injunction with a 10-day stay, giving the companies time to appeal. California and three cities sued Uber and Lyft in May, claiming that they are violating AB5, the state's new gig work law, by keeping drivers as freelancers, and that this deprives drivers of the rights and benefits of employment. Both companies returned to court Thursday in a telephone hearing to ask Schulman for more time while they appeal his preliminary injunction, as both plan to do swiftly. Both said they could not immediately hire their tens of thousands of drivers as employees. "Because Lyft cannot transform its operations at the flip of a switch, if the injunction goes into effect, Lyft will have to immediately suspend operation (of ride-hailing) in California," the company wrote in its arguments. Schulman was not convinced. "I am confident that the Court of Appeal is capable… Read full this story

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