An appeals courtroom on Thursday rejected a bid by Uber and Lyft to keep away from having to proceed treating drivers as impartial contractors whereas battling the California labour regulation.
A decide in August granted a restraining order in a lawsuit filed by California lawyer normal Xavier Becerra and three cities together with San Francisco, the place Lyft and Uber are based mostly.
The order directed the ride-share corporations to adjust to the brand new regulation and cease classifying drivers as impartial contractors whereas a lawsuit performs out in courtroom.
That order was placed on maintain whereas it was appealed.
“We tackle right here whether or not the trial courtroom abused its discretion in granting a preliminary injunction that restrains Uber and Lyft from classifying their drivers as impartial contractors,” the appeals courtroom panel mentioned in its ruling.
“Seeing no authorized error, we conclude the trial courtroom acted inside its discretion and accordingly affirm the order as issued.”
The choice may become moot, nevertheless, as a result of the injunction wouldn’t take impact till after California voters decide the destiny of a poll measure that would exempt the ride-share providers from the regulation.
Uber and Lyft even have the choice of interesting the choice to a better courtroom.
A poll measure sponsored by the businesses would hold drivers categorized as contractors however present advantages akin to healthcare.
Uber has argued that requiring drivers to be categorized as staff would go away jobs just for a small fraction of its drivers and that rides would turn into dearer.
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