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  • Rideshare service rivals Uber and Lyft were given a temporary reprieve Thursday from having to reclassify drivers as employees in their home state of California by Friday. An appeals court granted their request to put a hold on a judge's order that the companies comply with a new labor law, on the condition they agree to speeding up procedures in a legal case to resolve the matter. "The petitions are granted and the preliminary injunction is stayed pending resolution of Lyft and Uber appeals," an appeals court said in its ruling. The court said it wanted sworn statements from Uber and Lyft bosses that they have plans to 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. A ballot measure sponsored by the companies would keep drivers classified as contractors but provide benefits such as health care. "We are glad that the Court of Appeals recognized the important questions raised in this case," Uber said. "And that access to these critical services won't be cut off while we continue to advocate for drivers' ability to work with the freedom they want." Shortly before the appeals court decision, Lyft said it would suspend its rideshare service in California rather than classify drivers as employees entitled to benefits. "This change would... necessitate an overhaul of the entire business model -- it's not a switch that can be flipped overnight," Lyft said in a blog post. Uber had also expected to suspend its ride service in California. gc/ft
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  • Uber-Lyft get reprieve in driver classification case
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