Uber CEO warns California ruling could force a months-long shutdown
A November ballot initiative will let California voters decide Uber’s fate. …
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Uber CEO Dara Khosrowshahi is warning that a landmark California ruling on the employment status of its drivers could force the company to shut down its service in California until November.
“We think we comply by the laws,” Khosrowshahi said on MSNBC. “But if the judge and the court finds that we’re not, and they don’t give us a stay to get to November, then we’ll have to essentially shut down Uber until November when the voters decide.”
Last year, California’s legislature passed legislation designed to force Uber and other “gig economy” companies to treat their drivers as employees rather than independent contractors. That could entitle the workers to minimum wage protections, reimbursement for expenses, unemployment insurance, and other benefits.
A state court confirmed on Monday that the new law applies to Uber and gave the company just 10 days to comply. Uber is hoping that an appeals court will block enforcement of the order while the case proceeds.
After the law passed last year, Uber, Lyft, and DoorDash spent more than $100 million gathering signatures for a voter initiative that would overturn the law. It is slated to appear on the ballot in November.
A big change
Labor rights advocates argue that Uber drivers deserve the same benefits and protections that other workers enjoy. Uber has argued that many of its drivers value the flexibility of its current model—flexibility that might not be possible in a more conventional employment relationship.
Under the current
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