Uber must class drivers as employees
UBER must begin classifying its drivers as employees, a California judge has ruled, condemning the company’s “prolonged and brazen refusal” to comply with the US state’s law.
The app-based taxi company and its competitor Lyft are being sued by the California attorney general for failing to comply with a new law setting strict boundaries on when companies can classify workers as independent contractors, rather than employees who are entitled to benefits such as sick leave and health insurance.
In an order granting an injunction requested by the attorney general to enforce the law, San Francisco judge Ethan Schulman said the state had demonstrated an “overwhelming likelihood” of winning the case.
Enforcement of the injunction will be delayed by 10 days to give the companies a chance to appeal.
Uber has also been successfully taken to court in the UK over its practices, but has argued its business model should fall outside labour laws because of the greater flexibility it offers to drivers.
The Supreme Court will rule on its final appeal in October.