Uber and Lyft Must Classify Drivers as Employees, Appeals Court Says
23 October 2020 - 1:02PM
Dow Jones News
By Preetika Rana
Uber Technologies Inc. and Lyft Inc. are misclassifying their
workers as independent contractors and need to treat them as
employees according to state labor law, a California appeals court
said Thursday, affirming a lower court ruling from August that
threatened to upend the companies' business models.
Uber and Lyft would need to comply with the reclassification
within 30 days of a formal ruling, which could take several
weeks.
The companies, along with DoorDash Inc., Postmates Inc. and
Instacart Inc., have raised more than $189 million for a ballot
initiative on Nov. 3, asking that voters exempt them from such a
reclassification. That result would supersede any court
rulings.
(More to come.)
Write to Preetika Rana at preetika.rana@wsj.com
(END) Dow Jones Newswires
October 22, 2020 21:47 ET (01:47 GMT)
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