Technology, Business

August 11, 2020

California moves closer to classifying Uber and Lyft drivers as employees

Source: Unsplash (Dan Gold) 

The Gist

A ruling made yesterday by a California judge officially declares Uber and Lyft drivers as employees deserving of benefits. 

The List

  • Both ride-sharing companies are expected to appeal the ruling. 
  • Uber and Lyft argue that many drivers prefer to be classified as freelancers, as it gives them additional flexibility in employment and tax write offs. 
  • Uber as accused the state of California of trying to "shut down an entire industry" in the midst of the economic depression caused by Covid-19. 
  • The state of California argues that drivers are "central, not tangential" to Uber and Lyft's core operations. 
  • The dispute around classifying Uber and Lyft drivers as employees under California law has been going on May of this year.

Additional information

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