Court Issues Stay of Injunction Order Requiring Uber and Lyft to Reclassify Their Drivers as Employees
As previously reported, a San Francisco Superior Court judge recently issued a preliminary injunction against Uber and Lyft, ordering them to reclassify their drivers as employees instead of independent contractors. Uber and Lyft filed an immediate appeal seeking a stay of the trial court’s order. Had the stay not been granted, Uber and Lyft both reported that they would have suspended ridesharing services in California tonight. Luckily for Californians, the immediate loss of Uber and Lyft services was averted today. The Court of Appeal granted an immediate stay of the injunction, preventing it from taking effect during the pendency of the appeal, provided that Uber and Lyft agree to a very expedited briefing schedule on the appeal and submit plans for how they would comply with the injunction in the event they lose their appeal on the merits AND their ballot petition (whereby voters this November can vote to allow Uber and Lyft drivers to continue as independent contractors) is unsuccessful. This is great news for Uber and Lyft, as it effectively means they can continue operations in California until voters decide this important issue in November. Hopefully the voters will think more than the California legislature has of the importance of retaining these services in the state – both for consumers and workers.