A few weeks ago, we discussed how the state of California had taken major strides in order to modify the definition of employee and reclassify the thousands of “gig workers” in the state to be employees of the companies who utilize their services.
In July, a district court judge in California granted a preliminary injunction against the companies, and ordered them to begin treating their workers as employees, no later than August 20, 2020. Following the decision by the lower court, both Uber and Lyft filed appeals against the injunction that were denied, and later requested a stay of the injunction so that the companies could prepare for the changes required by the law. Both companies made public announcements that if the stay was not granted, they would cease all operations of their ride-hailing services in the state. This led to requests from both the city of San Jose and San Diego that the injunction be stayed.
In a temporary reprieve from the requirements of the law, the California Court of Appeals has granted a stay of the injunction. Uber and Lyft now have until early September to come up with a plan for reclassifying their workers in accordance with the law, and will not have to abide by the injunction until a decision can be made by the court of appeals. This, coincidentally, will occur right around the time citizens of California vote on a ballot measure to exempt the ride-sharing companies from the law.
In short, a stay has been granted on enforcing the law requiring gig companies to treat their workers as employees. As California is frequently a leader in progressive employment laws that have the habit of spreading across the country, we are keeping a close eye on the law as it could easily be proposed in other states looking to protect workers and gain income from companies that are not paying in what legislators believe to be their fair share of employment-related taxes. We will keep you up to date on the latest developments in this case, and any changes that could possibly affect you at home. For up-to-the-minute advice on the appropriate classification of your workers, talk to the Wiley Law Office, for legal advice that works.
This blog brought to you by the back-to-back champion of the Wiley Law Golf Open, Ben Reber.