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Ride Share Companies Granted More Time to Comply With State Employment Law

Posted Aug 27, 2020

On August 10, 2020, San Francisco Superior Court ordered a preliminary injunction requiring that ride share companies, Uber and Lyft, comply with state law AB 5 and reclassify drivers in the state as employees rather than independent contractors. The companies threatened to shut down their services if they were not granted a request for delay of that order. On August 20, the First Appellate District of California stayed the lower court’s order and the companies remain operational. Oral arguments in the case are scheduled for October 13 and the appellate court further ordered that the companies must submit sworn statements by September 4, along with “implementation plans” for complying with the law within 30 days if the court upholds the earlier orders. See ABA JournalCNN, Los Angeles Times.