On Thursday, a California judge rejected Uber and Lyft’s proposals to delay one the previous order ordering award companies to reclassify their contractors as full time employed. This decision enters into force on August 20, until that the companies had looking an extension of 10 days to prove an appeal.
“I am confident that the appellate court is capable of acting very quickly where necessary to do so. I am not convinced that any extension of 10 days’ stay is required. Both applications have been rejected,” he said. said Judge Ethan Schulman at the San Francisco Superior hearing for vice.
It looks like Uber Corporations tantruming fell on deaf ears. after Schulman mandated on Monday as Uber and Lyft reclassify their executives, Uber CEO Dara Khosrowshahi threatened to stop operations in his home state if it is forced to give directs the types of the basic benefits required by law by employees such as overtime insurance and unemployment.
“If the court does not reconsider, then in California, it is hard to believe that we will be able to transfer our model to full-time job quickly. So I think Uber will shut down for a while,” he said. Khosrowshahi in one interview Wednesday with MSNBC’s Stephanie Ruhle.
And probably Uber I will not to be the only one: In one the incomes call them the same day Lyft President John Zimmer said the company will be too suspension services in California if this week the ruling was not overturned.
Both ridesharing companies have continued steadily argued that such a drastic change in their business practices would be extremely costly, but it is not as if they did not have time to prepare for the transition. Monday’s government forces them to reconcile California Bill 5 of the watershed Assembly, which the state legislators almost passed a year ago at this point. The bill stipulates that “transport network companies” like Uber and Lyft prohibit the misuse of their labor force as independent contractors if their executives lacks any of the self-determination that one difference bring and provide the same benefits and fair protections for employees.