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California - Uber Lyft and Misclassification

On August 10, 2020, and in People of the State of California vs. Uber and Lyft, No. CGC-20-584402, a California Superior Court Judge in San Francisco County issued a preliminary injunction against Uber and Lyft that requires them to stop classifying their drivers as independent contractors while litigation is ongoing. The preliminary injunction takes effect in ten days. The court also denied Uber’s and Lyft’s request dismiss the case and stop the proceedings.

This decision was in response to the California Attorney General and three City Attorneys preliminary injunction filing alleging that Uber’s and Lyft’s misclassification of drivers causes immediate and irreparable harm to the state and deprives workers of critical workplace protections.

Uber’s CEO has been reported as stating that the company might temporarily shut down in California if it is required to classify drivers as employees, instead of independent contractors. Uber and Lyft are expected to appeal the injunction before it takes effect.