Uber CEO Dara Khosrowshahi says the ride-sharing company could be forced to shut down service in California for several months if a state court does not overturn a ruling requiring it to classify its drivers as full-time employees. ‘If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,’ Khosrowshahi told MSNBC on Wednesday. ’We will have to shut down until November.’ Uber’s rival Lyft issued the same warning about a probable shutdown soon after. ‘We may appeal this ruling and request a further stay. If efforts here are not successful, we would be forced to suspend our operations in California,’ Lyft co-founder and president John Zimmer said. Both companies are now in the process of filing appeals to overturn a Monday ruling from San Francisco Superior Court Judge Ethan Schulman, who determined there is an ‘overwhelmingly likelihood’ that the firms violated a state law by classifying their drivers as contractors instead of as employees. Schulman gave Uber and Lyft 10 days to reclassify the drivers, which would require the companies to provide benefits and unemployment insurance to all of them. Uber CEO Dara Khosrowshahi is pictured in… Read full this story
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