"The CEO of Uber said Wednesday the ride-hailing giant may be forced to shut down its California operations if an injunction requiring drivers to be classified as employees is upheld.
Dara Khosrowshahi said in an interview with MSNBC on Wednesday that Uber’s operations in the state may have to shut down until November.
Khosrowshahi’s announcement comes after a ruling by Judge Ethan Schulman of the San Francisco Superior Court earlier this week. Schulman ruled that ride-hailing companies must reclassify their drivers, who have been classified as independent contractors, in the wake of a new state law.
The injunction is part of a lawsuit brought on by the State of California and city attorneys in San Francisco, Los Angeles and San Diego. Their lawsuit alleges the ride-hailing giants violated Assembly Bill 5, claiming they “exploited hundreds of thousands of California workers” by classifying drivers as independent contractors instead of employees.
Both Uber and Lyft have said they plan to appeal the judge’s decision. The companies are also funding Proposition 22 on the November ballot, which would grant them a carve out to AB5."
Dara Khosrowshahi said in an interview with MSNBC on Wednesday that Uber’s operations in the state may have to shut down until November.
Khosrowshahi’s announcement comes after a ruling by Judge Ethan Schulman of the San Francisco Superior Court earlier this week. Schulman ruled that ride-hailing companies must reclassify their drivers, who have been classified as independent contractors, in the wake of a new state law.
The injunction is part of a lawsuit brought on by the State of California and city attorneys in San Francisco, Los Angeles and San Diego. Their lawsuit alleges the ride-hailing giants violated Assembly Bill 5, claiming they “exploited hundreds of thousands of California workers” by classifying drivers as independent contractors instead of employees.
Both Uber and Lyft have said they plan to appeal the judge’s decision. The companies are also funding Proposition 22 on the November ballot, which would grant them a carve out to AB5."