Скачать или смотреть Uber and Lyft win delay in converting drivers to full-time employees

CNBC's Deirdre Bosa reports Uber and Lyft have won the delay in converting drivers to full-time employees. This comes after Lyft said it would suspend its service in California because a court required the company to reclassify its drivers as employees. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

A California appeals court extended the length of time Uber and Lyft will have to comply with an order requiring them to reclassify rideshare drivers as employees. As a result, Uber and Lyft said they would continue operating in California during the stay after threatening to suspend service.

The temporary reprieve gives Uber and Lyft until 5 p.m. PT on August 25 to file written statements agreeing to expedited procedures stated in the order.

Uber and Lyft’s stocks were both up about 6% following the order. Both stocks had fallen into the negative after Lyft announced earlier Thursday that it would suspend its service in California at midnight PT but reversed its decision after the appeals court granted additional time. An Uber spokesperson said the company would continue to operate in California during the stay.

“We are glad that the Court of Appeals recognized the important questions raised in this case, 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,” an Uber spokesperson said in a statement. Uber had not announced a decision to suspend service prior to the order.

Top executives at Uber and Lyft both said last week they’d likely have to suspend service in the state to comply with the court order. The lower court granted a ten day stay on the preliminary injunction but rejected to extend it. That stay was set to expire at the end of the day Thursday.

California Attorney General Xavier Becerra had requested the injunction as part of a May lawsuit that alleged Uber and Lyft violated the state’s new labor law known as Assembly Bill 5 (AB5), which aimed to grant benefits to gig economy workers. Becerra and city attorneys from San Francisco, Los Angeles and San Diego claimed that by violating the law, Uber and Lyft were skirting expenses like payroll taxes and unemployment insurance for their workers.

The stay will extend until Uber and Lyft’s appeals are resolved on the condition that they agree to a new timeline and procedure. If they do not, the stay will expire on Aug. 25 at 5 p.m. PT. One of those conditions is that the CEOs of Uber and Lyft both submit sworn statements on or before Sept. 4 confirming they’ve developed plans to comply with the preliminary injunction within 30 days of a ruling if the appeals court affirms the preliminary injunction and if Proposition 22, the ballot measure that would exempt the firms from AB5, fails to pass.

“We’re confident in the facts of our case and look forward to continuing our fight to defend the rights of workers,” a spokesperson for California Attorney General Xavier Becerra said in a statement.

While Uber and Lyft opposed AB5 prior to its passage, they later claimed they were not subject to the law as technology platforms, rather than employers. Uber, for example, made changes to its platform in California that allowed drivers to view more information about upcoming rides and have more control over their selections. That change could help Uber make the argument it does not control what workers do on the job, which is a key part of the three-pronged test that determines if hiring firms are employers.

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