Update: Appeals court extends deadline for Uber, Lyft to comply with driver reclassification demands

State News

Update (12:25 p.m.):

Uber and Lyft will not have to comply with a previous decision to reclassify rideshare drivers as employees by the prior deadline of Friday, after a California appeals court extended the cutoff.

In a decision announced Thursday, the appeals court gave the two companies until to Aug. 25 at 5 p.m. to file written statements agreeing to expedite the process of reclassifying their rideshare drivers as employees.

Lyft did not state if it would adjust its previously announced plans of shutting down rideshare services Thursday at 11:59 p.m.

Original story:

Lyft plans to suspend service throughout California at 11:59 p.m. Thursday, after a court allowed a requirement that rideshare services throughout the state reclassify drivers as employees.

The court granted a preliminary injunction against rideshare companies Uber and Lyft last week, but stayed its ruling until Friday while companies appealed.

Both Uber and Lyft stated previously they would likely have to suspend service to comply with the order, which would mean restructuring their operations and rehiring workers.

Under the new requirements, approximately 80 percent of Lyft drivers would lose work, while others would be rehired as employees with shifts, according to a press release from the company.

Uber has yet to release an official statement about suspending service in the state.

The injunction was part of a lawsuit filed by California’s attorney general and three city attorneys claiming Uber and Lyft skirted expenses for workers by falsely classifying them as contractors rather than employees.

Uber and Lyft have a chance to avoid further legal action with a November ballot measure they’re supporting. If voters support Proposition 22, Uber, Lyft and other app-based ride-hailing and food delivery services will be exempted from AB5, which requires rideshare companies to classify drivers are employees.

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