newsletter, ordered by a California superior court judge to classify their drivers as employees, filed a motion for a preliminary injunction. California represents a substantial chunk of both companies' businesses. Uber CEO says its service will probably shut down temporarily in California if it’s forced to classify drivers as employees. Uber and Lyft Could Shut Down in California This Week Over 'Disruptive' Court Order this link is to an external site that may or may not meet accessibility guidelines. Updated on: August 20, 2020 / 4:50 PM / MoneyWatch. But if their appeal fails, Uber may have to close up shop in California, Khosrowshahi said. With hours to go before the original deadline, the companies were bracing for a shutdown. Spokespersons for Uber and Lyft did not immediately respond to requests for comment. All times are ET. The company is appealing a court decision that would define its drivers as full-time employees. All rights reserved. Published Wed, Aug 12 202010:32 AM EDT Updated Thu, Aug 13 … By Irina Ivanova. A reclassification of their workers would represent a radical shift forced on the two businesses. Uber also alluded to shutting down its business in California in the motion it filed in court on August 10th. Each coupled those warnings with a push for a. The company is appealing a judge’s order to stop classifying drivers as independent contractors. If drivers were classified as employees, Uber and Lyft would be responsible for paying them minimum wage, overtime compensation, paid rest periods, and reimbursements for the cost of driving for the companies, including personal vehicle mileage. Inside the decision that's still rattling the movie industry to its core, Tucker Carlson claims vaccine campaign 'feels false, because it is', How the vaccine gets from the lab to your arm, McDonald's is putting cameras in dumpsters. Uber and Lyft have just over a week left to appeal the injunction. "If they can't figure it out, I'm confident other entrepreneurs will," he said. By September 4, 2020, the CEOs of Uber and Lyft must submit sworn statements with "implementation plans" for complying with the law within 30 days if the court upholds the earlier injunction order and if the ballot initiative does not pass. That won’t happen due to a new legal development, but they’re still operating under huge uncertainty. Gig Workers Deserve Better. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. "While we won't have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers," said Lyft spokesperson Julie Wood in a statement. Uber and Lyft filed pleas for immediate stays to a California court of appeal, which granted them Thursday. But as independent contractors, drivers receive none of these benefits. Uber may shut down in California if forced to classify drivers as employees, CEO says, A few deals to get 2021 started off right, Deals on fitness products, phones, and more, OnePlus is offering a free pair of Bud Z wireless earbuds when you preorder the Nord N10 5G, Plus, grab one year of PlayStation Plus for as low as $30, Here are the best Amazon Echo deals right now, The Echo devices get discounted regularly, The 44mm Apple Watch SE is $40 off at Amazon, Apple’s most affordable smartwatch gets a temporary price cut, Get two years of PlayStation Plus for only $58 today, Sign up for the The New York Times reported earlier this week that while pushing their November ballot initiative, the companies are also considering their other options, including exploring a franchise-like model where they would not employ drivers directly but would instead potentially license their name to fleet operators in the state. 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