Quantcast

Uber Plans to Pull Calif. Operations over Contract-Worker Regulations

'It would put vast swaths of our drivers out of work," he continued. "It would take away transportation for hundreds of thousands of Californians...'

Uber CEO Dara Khosrowshahi said on Wednesday that the ride-hailing service would temporarily suspend its app in California if the state continues to try to force the company to classify its drivers as employees instead of contractors.

Khosrowshahi’s announced the potential move just days after a San Francisco Superior Court judge ruled that Uber and Lyft must comply with the California legislature’s bill enforcing more stringent restrictions on employee classifications.

Both companies said the will appeal the ruling, which was stayed for 10 days.

Uber and Lyft also plan to support a measure that will appear on the November ballot exempting gig companies from California’s regulations.

“We think we comply by the laws, but if 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,” Khosrowshahi told MSNBC.

- Advertisement -

He noted how unfortunate this loss would be for California, which is Uber’s largest market in the country.

“It would be really unfortunate at a historic time of unemployment in California,” he said.

“It would put vast swaths of our drivers out of work,” he continued. “It would take away transportation for hundreds of thousands of Californians.”

California Attorney General Xavier Becerra, however, doesn’t seem to care about the possibility of unintended consequences including economic and political fallout.

He filed a lawsuit against Uber and Lyft earlier this year, alleging that they were harming their drivers by not designating them as employees, thereby depriving them of traditional benefits, such as health insurance and workers’ compensation.

- Advertisement -

But Khosrowshahi argued that most Uber drivers prefer to be labeled as contractors because it gives them the flexibility to set their own hours.

Regardless, Khosrowshahi said California shouldn’t expect Uber to be in the state much longer unless the court grants a stay.

“If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” he told MSNBC.

- Advertisement -

TRENDING NOW

Los Angeles May Give Black Family a Beachfront Property That Once Belonged to Their Ancestors

(Headline USA) Los Angeles county officials may give a black family a beachfront property that was seized from their ancestors nearly a century ago. Manhattan...

Senate Passes $1.9 Trillion ‘COVID Relief’ Bill with Giveaways to Democrats

(Headline USA) Senate passage of the sweeping $1.9 trillion bailout bill Saturday puts President Joe Biden's top priority closer to becoming law. "Lessons learned: If...

Families Burn Masks at Idaho Capitol in Protest of Mandates

(Headline USA) At least a hundred people gathered at the front of the Idaho Capitol on Saturday to burn masks in a protest against...

As Border Crisis Explodes, Biden Lifts COVID Cap for Child-Detention Centers

(Headline USA) As President Joe Biden's crisis of unaccompanied minors explodes at the border, the administration announced Friday that it planned to lift the...
- Advertisement -