Lyft announced it will halt its ride-sharing service in California on Thursday in response to a state law that requires them to make drivers …
Lyft announced it will halt its ride-sharing service in California on Thursday in response to a state law that requires them to make drivers employees instead of independent contractors. In a Thursday blog post, the company confirmed that the suspension will take effect on Aug.20 at 11:59 p.m. PT, while urging support for a ballot initiative, Proposition 22, that would let Californians vote on whether to exempt rideshare and delivery drivers from a new law that restricts gig work. “This is not something we wanted to do, as we know millions of Californians depend on Lyft for daily, essential trips,” Lyft said in a statement, which follows a California court ruling that requires Lyft and Uber to classify drivers as employees. San Francisco Superior Court judge Ethan Schulman on Aug.10 granted an injunction in a lawsuit brought against the two ride-sharing giants, after they resisted being forced to classify their drivers as full employees under Assembly Bill (AB) 5, a law that took effect in January. Schulman’s decision was on hold for 10 days to give the companies a chance to appeal.
