2020-55: Court rules Uber/Lyft must treat their drivers as employees - Spidell

2020-55: Court rules Uber/Lyft must treat their drivers as employees


The San Francisco Superior Court has ruled that Uber and Lyft must immediately begin treating their drivers as employees in California.

The court found that Uber and Lyft’s treatment of their drivers was in direct contravention of AB 5’s ABC test and refused to grant a stay of the order while Uber and Lyft appeal the decision. The court also refused to grant a stay pending the outcome of Proposition 22 on the November 2020 ballot, in which Uber and Lyft are asking voters to decide whether their drivers should be treated as independent contractors, entitled to specified pay and benefit protections to be provided by the companies.

Uber and Lyft will undoubtedly appeal the decision, but unless a court of appeal quickly intervenes Uber and Lyft must begin treating their California drivers as employees immediately.

The superior court’s order can be found at:

www.caltax.com/files/2020/uberlyft081020.pdf

We will include additional information on this case, and the latest information and developments regarding AB 5 and California worker classification, in upcoming issues of Spidell’s California Taxletter.

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