Like Uber, Lyft says it may temporarily suspend service in California if it is required to classify drivers as employees rather than independent contractors. Lyft President Josh Zimmerman broke the news during an earnings call with investors yesterday.
Earlier this week, a California court issued an injunction, which would force Lyft and Uber to reclassify their workers. California is accusing the companies of not abiding by Assembly Bill 5 (AB5), which went into effect on January 1st, 2020. Lyft and Uber both said they’d appeal this week’s injunction, which has been stayed until August 20th. If the court upholds the injunction, the ridesharing companies say they’ll have no choice but to temporarily suspend service.