California switched Bill Bill 5 late last year in an effort to reclassify many concert economy employees as employees, and so far, Lyft and Uber have not done so. The state is suing them, and on Monday afternoon Judge Ethan Schulman of the San Francisco Supreme Court ruled in favor of issuing a preliminary injunction that would block companies from classifying drivers as independent contractors.
Reuters reports that in the 34-page decision Schulman said there is a “high probability”; that the state will prove that two companies have illegally classified workers and that they fail the three-step test of the law to determine whether workers are employed. He delayed the implementation of the decision for ten days to allow appeals, which both companies plan to pursue, while Chronicle of San Francisco Uber reports also said it would push for a longer stay. In a statement, Lyft said, “We will immediately appeal this decision and continue to fight for their independence. Ultimately, we believe that this issue will be decided by California voters and that they will join the drivers.” . “