Reclassification for Uber and Lyft Drivers

A San Francisco Superior Court Judge decided that Uber and Lyft drivers must be classified as employees and not independent contractors as they do not perform work that is “outside the usual course” of these businesses.  The result of such reclassification would require Uber and Lyft to afford drivers with various job protections in California, including providing them with sick leave, minimum wages, and overtime. The decision stems from litigation arising from the enactment of Assembly Bill 5 (AB 5) regarding worker classification. The court has stayed implementation of its order pending the expected appeal of the decision by both Uber and Lyft.