This archive report was first published on 21 August 2020.
On August 20, 2020, an appeals court granted Uber and Lyft a temporary reprieve from reclassifying drivers as employees in California, effectively halting their plans to suspend ride services in the state.
The court's decision came after a judge had given the companies until August 21 to comply with a labor law that went into effect at the start of the year.
Uber and Lyft had planned to suspend their services in California rather than classify drivers as employees entitled to benefits, but the appeals court's ruling has put those plans on hold.
"The petitions are granted and the preliminary injunction is stayed pending resolution of Lyft and Uber appeals," the appeals court said in its ruling.
The court also set an October 13 hearing date for oral arguments on the matter and wants sworn statements from Uber and Lyft that they would comply if the judge's original order is eventually upheld and if a proposition aimed at overriding the new labor law loses on a November ballot.
Uber and Lyft are counting on voters to approve a ballot measure sponsored by the companies that would keep drivers classified as contractors but provide benefits such as health care.
Analysts have cautioned California regulators against the risk of putting more people out of work as American unemployment has spiked amid the coronavirus pandemic.
