Uber and Lyft can continue operations in California after court ruling regarding driver classification

From Barchart: 2025-01-01 13:31:04

Uber and Lyft have resumed operations in California after a court ruling granted them a temporary reprieve from a shutdown order. The court determined that the companies need more time to comply with a new state law aimed at classifying drivers as employees rather than independent contractors.

The ruling comes after Uber and Lyft threatened to suspend services in California due to the new law. The companies argued that reclassifying drivers would lead to increased costs and impact their business models. However, the court’s decision allows them to continue operations while they appeal the law.

The legal battle between Uber, Lyft, and the state of California has been ongoing for months. The companies have faced scrutiny over their classification of drivers and labor practices. The latest ruling is seen as a temporary victory for Uber and Lyft, but the larger issue of driver classification remains unresolved.

Despite the temporary reprieve, Uber and Lyft still face challenges in California and other states where similar laws are being considered. The outcome of the legal battle could have far-reaching implications for the gig economy and how companies like Uber and Lyft operate in the future.



Read more at Barchart: Lyft Shows Unusual Call Options Activity