Last-minute California court ruling paves way to stave off Uber, Lyft shutdown

By Tina Bellon (Reuters) - A California appeals court on Thursday halted a lower court order that would have forced Uber Technologies Inc and Lyft Inc to treat their drivers as employees, paving the way for the companies to avoid a shutdown of ride services in the state. The companies had said they would be unable to comply with a new law that would consider their drivers employees entitled to benefits such as minimum wage, overtime and sick pay and unemployment insurance.


Last-minute California court ruling paves way to stave off Uber, Lyft shutdown

By Tina Bellon

(Reuters) - A California appeals court on Thursday halted a lower court order that would have forced Uber Technologies Inc and Lyft Inc to treat their drivers as employees, paving the way for the companies to avoid a shutdown of ride services in the state.

The companies had said they would be unable to comply with a new law that would consider their drivers employees entitled to benefits such as minimum wage, overtime and sick pay and unemployment insurance.

Lyft shares were up almost 9% after the last-minute ruling, and Uber shares were up 6.4%.

The companies had sought the intervention of the California First District Court of Appeal in San Francisco to block an injunction order issued by a judge last week. That ruling forced the companies to treat their drivers as employees starting Thursday after midnight.

(Reporting by Tina Bellon in New York; Editing by Steve Orlofsky and Tom Brown)

This story has not been edited by Firstpost staff and is generated by auto-feed.


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