(Reuters) – A California Court of Appeals on Tuesday listened to arguments from lawyers for Uber Technologies Inc., Lyft Inc. and the state of California over whether the state can recognize its drivers as employees with the right to minimum wage, overtime pay, health insurance and unemployment insurance. .
The case is part of a battle over the future of the so-called gig economy in California. In January, the state implemented a law that makes it more difficult for hail, food delivery and other app-based companies to classify workers as independent contractors.
While state law gives the Court of Appeal 90 days to issue a decision, a decision on the future of gigs will likely be made by California voters on November 3 instead.
Uber, Lyft, DoorDash, InstaCart and Postmates have together spent more than $ 1
In May, California and the cities of Los Angeles, San Diego and San Francisco sued Uber and Lyft for alleged violations of AB5 by refusing to reclassify drivers. A California judge in August ordered companies to reclassify their drivers as employees within ten days.
This decision was revoked when the companies, under the threat of leaving the state completely, appealed the decision.
During Tuesday's nearly two-hour hearing at California's First Court of Appeal, Ubers and Lyft attorneys told the panel of judges that the lower court had ignored their evidence and ruled in favor of the state based on erroneous assumptions.
Lawyers said the law would cause irreparable damage to the state and its residents, with companies forced to review their business models and cut thousands of part-time drivers from their platform.
A state and city attorney said damage was already caused by misclassified drivers and others. California companies that follow the law. Catalog