Uber plans to shut down if told to treat drivers as employees
UBER says it will withdraw its service in California for several months if it is forced to comply with a state law requiring it to treat its drivers as employees.
Chief executive Dara Khosrowshahi said that enforcement of the law, which sets strict limits on when a company can treat workers as private contractors, would mean the company “essentially shuts down” until November, when California is due to vote on a proposal to overturn it.
Mr Khosrowshahi said: “We think we comply by the laws. But if the judge and the court finds that we’re not, and they don’t give us a stay to get to November, then we’ll have to essentially shut down Uber until November when the voters decide.”
Uber is currently being sued by California and several of its cities for failing to follow the law. It argues that it does not have to because its drivers are not “core” to its business, one of the conditions.
But on Monday a San Francisco judge granted an injunction compelling the company to immediately fall in line with the regulations.