Lyft to Suspend Service in California -- Update
August 20 2020 - 1:48PM
Dow Jones News
By Preetika Rana
Lyft Inc. said Thursday it will suspend operations in California
as of midnight, to avoid violating an order that requires it to
immediately reclassify its drivers as employees.
California sued and Lyft and Uber Technologies Inc. in May,
alleging they were violating the law, which requires companies to
treat workers as employees rather than independent contractors if
they are controlled by their employer and contribute to its usual
course of business, among other things. As employees, drivers would
be eligible for sick days and other benefits, issues that have
become more pressing during the coronavirus pandemic.
Uber and Lyft, both based in San Francisco, have argued that
they are technology platforms connecting riders with drivers, not
transportation companies, so the drivers aren't part of their usual
course of business.
A state judge agreed with California last week and gave the
companies until Friday to reclassify their drivers as
employees.
Write to Preetika Rana at preetika.rana@wsj.com
(END) Dow Jones Newswires
August 20, 2020 13:33 ET (17:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Lyft (NASDAQ:LYFT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lyft (NASDAQ:LYFT)
Historical Stock Chart
From Apr 2023 to Apr 2024
