Uber Technologies Inc. thrashed out a forceful order to treat California drivers as employees, though the court’s decision could entitle a continuing battle over benefits and payments to get a strong grip by next year.
Edward Chen, a U.S. District Judge, rebuffed edict Uber must immediately treat drivers like its employees in the state. The ruling was based on an enduring fight, saying that the ride-hailing company is behaving dishonestly not only to workers but the people.
The San Francisco court also declined to express a view on the case. California is about to impose a law aimed at gig economy companies from next year. The new law could pose a threat to Uber’s business operations. Chen deduced that the case shows a plausible claim that any misclassification by Uber is willful.
Uber’s representatives refused to express their views on the ruling.
According to the AB 5 bill approved by California Governor Gavin Newsom, companies should use a three-pronged test to prove workers are independent contractors if they are working outside the company business. Advocates voiced that the law will hamper the company’s debate that its drivers are independent contractors. Uber also admitted that the law could be a strong obstacle.
The judge said it was too early to direct Uber to instantly recategorize its drivers, considering they signed arbitration agreements that restrict them from chasing injustice in court, which might reduce the number of drivers who would take advantage.
Though he rejected Uber’s solicitation to expel the protest, finding that the driver who recorded it “could shape the premise” of the claim depends on the 2018 Dynamex choice by California’s most elevated court. The decision applies all the more straight-forward tests to figure out which laborers fit the bill for worker status and the orderly advantages.