On Tuesday, Superior Court Judge Ethan Shulman found that Uber and Lyft violated Assembly Bill 5 (AB 5) also known as the “gig worker bill,” which codified a three-pronged test to determine worker classification under Labor Code section 2570.3.
The judge rejected Uber’s argument that the drivers are offering technology platforms and its drivers are performing work outside the usual course of its business. He noted that the ride-sharing company “does not simply sell software; it sells rides…it is clear that Uber is most certainly a transportation company.”
Judge Shulman issued a preliminary injunction against Uber and Lyft’s misclassification of their drivers as independent contractors. He also prohibited both ride-sharing companies from further any provision of the Labor Code, the Insurance Code, and the wage orders of the Industrial Welfare Commission with regard to their drivers.
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