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Are Lyft & Uber Shutting Down In California? A State Law Is Creating Confusion

Are Lyft & Uber Shutting Down In California? A State Law Is Creating Confusion

On Aug. 10, a California judge told ride-share companies that as of Aug. 21, they would have to comply with a law that would force them to recognize their drivers as employees. The problem, according to Uber and Lyft, is that an overhaul of their existing employee model — where drivers are currently classified as independent contractors, not employees — could not possibly happen on that timeline. The result? Uber and Lyft threatened to shut down service in California, as of midnight.

It’s complicated, but that’s not exactly what’s happening anymore. With the deadline looming, Uber and Lyft submitted an appeal to the court on Aug.13 to avoid a total shutdown, after being denied a 10-day extension from the judge. The companies seemed prepared to suspend their services in California, and Californians prepared to be rideless. Then, on Aug. 20, a California appeals court paused the court order, allowing the ride share companies to continue servicing the state while the appeal works its way through the court system. For the time being, Uber and Lyft are not shutting down their service in the state. (Bustle has reached out to Uber and Lyft for comment, but didn’t receive an immediate response. We will update this post when we hear back.)

Why all the back and forth? It has to do with a state law that went into effect back in January. The law, Assembly Bill 5 (AB5), would help to classify…

Here’s What’s Happening With Uber & Lyft Right Now

On Aug. 10, a California judge told ride-share companies that as of Aug. 21, they would have to comply with a law that would force them to recognize their drivers as employees. The problem, according to Uber and Lyft, is that an overhaul of their existing employee model – where drivers are currently classified as independent contractors, not employees – could not possibly happen on that timeline.



Are Lyft & Uber Shutting Down In California? A State Law Is Creating Confusion

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