Technology

California Court Ruling Spells Major Changes for Uber and Lyft

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Superior Court Judge Ethan Schulman issued a court ruling on August 10th that the ride-sharing companies Uber and Lyft would have to begin treating their drivers as employees. This preliminary injunction is in response to a suit filed by California Attorney General Xavier Becerra against the companies for violating Assembly Bill No. 5, which passed last fall and went into effect on January 1st.

Expanding on Dynamex Operations West, Inc. v. Superior Court of Los Angeles, the AB5 law requires a three-tiered test to determine whether they should consider a contract worker an employee. This test includes that the contractor’s work falls outside the core of the hiring company’s business. That the contractor can work at the same job outside of the hiring company. And that the contractor is free to perform the work that the company contracts them for without direct control of the hiring company.

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