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Uber and Lyft achieve driver deferral

2020-08-20T21:13:14.447Z


Uber and Lyft drivers are self-employed transport customers from A to B. That is what the US state of California wanted to change. Because the transport service agents threatened to withdraw, they are now given more time.


Uber and Lyft drivers are self-employed transport customers from A to B. That is what the US state of California wanted to change. Because the transport service agents threatened to withdraw, they are now given more time.

San Francisco (AP) - The driving service brokers Uber and Lyft have managed to postpone the implementation of a law in California at the last minute, according to which drivers must be treated as employees and no longer as independent entrepreneurs.

Lyft had previously announced that it would suspend operations in the US state at midnight because the new regulation would then take effect. Uber had also announced a stop.

An appeals court linked the postponement with conditions. First, Uber and Lyft must agree to an expedited appeal process. Then the company bosses must personally assure by September 4th that there are plans to implement the law within 30 days. These plans are to be used if the court rejects the objection - or if an exemption sought by the company fails with the California voters. An oral hearing in the appeal process has been scheduled for October 13th.

It got tight for Uber and Lyft after a judge ruled that drivers active on such platforms must be treated as employees in the state under a 2019 law. The injunction should come into effect on Friday. At the same time, the companies are hoping that "Proposition 22", which they have massively supported, will be adopted in November, which contains an exception to the law for travel agents.

The business of Lyft and Uber was recently massively affected by the Corona crisis. California is a very important market for Lyft in particular: 16 percent of all trips take place there for the smaller Uber rival.

© dpa-infocom, dpa: 200820-99-246389 / 2

Source: merkur

All news articles on 2020-08-20

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