A California Superior Court judge granted a preliminary injunction requiring Uber and Lyft to reclassify ride-hailing drivers as employees rather than independent contractors. The injunction was sought by the state attorney general and the city attorneys of Los Angeles, San Diego, and San Francisco [California v. Uber Tech., Inc., No. CGC-20-584402 (Cal. Super. Ct., 8-10-20)].
The court order applies the employee-friendly ABC test to determine worker classification, which the California Supreme Court established in its Dynamex decision and the state legislature later codified into law with A.B. 5, which took effect on January 1, 2020. Uber and Lyft have announced their intention to appeal the ruling.
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.
Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.
Mavanee Anderson, Esq. is an Editor of PayState Update and Payroll Information Resources for the APA.
