Uber plans to shut down if told to treat drivers as em­ploy­ees

The Daily Telegraph - Business - - Business - By Olivia Rudgard in San Fran­cisco

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.

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