Court in California decided the fate of the Uber and Lyft
Judges in cases concerning the status of the transport service Uber and Lyft and their employees have failed to reach definite decision. Litigation focuses on the complicated question of whether employees of both companies drivers should be treated as agents or contractors working on a free contract.
Legal definitions of both categories in California are equally distant from the real status of drivers. Judges in both cases on the subject decided to leave the matter in the hands of the jury, but commented that its members “get a square peg and will have to choose between two round holes”. If the jury decides to qualify drivers Uber and Lyft as employees in traditional type of business, the two companies will have to start paying the appropriate bonuses and compensation – health insurance, sick leave, unemployment insurance and others. The judgment is likely to affect the status of the two companies in other states and other similar services. Representatives of the court commented that the strange event was caused equally by outdated labor laws of California and innovation of the business model of Uber and Lyft.