Uber and Lyft drivers are labeled as workers, the California Public Utilities Fee has formally dominated. The regulator, which oversees ride-hailing firms, declared its determination in an order revealed on Tuesday. It mentioned “a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor” below AB5, the state’s new legislation protecting gig work, which grew to become efficient on January 1st, 2020.
In its order, the Fee talked about that Uber filed a lawsuit in federal court docket to forestall its drivers from being labeled as workers below AB5. It additionally famous that Uber and Lyft efficiently “placed on the November 2020 ballot a measure that would exclude all app-based drivers from AB5.” The lawsuit and poll don’t have an effect on the Fee’s authority over ride-hailing providers, although, so their drivers are “presumed to be employees.” Which means the regulator should be sure that ride-hailing providers “comply with those requirements that are applicable to the employees of an entity subject to the Commission’s jurisdiction.”