A California judge has just ordered major rideshare companies, including Lyft and Uber, to reclassify their employees. Traditionally, their employees were seen as independent contractors. Now, they must be reclassified as actual employees of the company.

The gig economy workforce has been going strong for a while according to Uber accident lawyers Newport Beach. Many individuals enjoyed the flexibility that working as an independent contractor allowed. These new regulations could change the way they make money and put some of these individuals out of work. 

The Debate For Labor Law Benefits
Monday, Superior Court Judge Ethan Schulman made the ruling for rideshare companies. He notated that these companies used circular reasoning that only allowed tech employees to receive the benefits that the nation’s labor laws offer. Drivers of these rideshare companies were not given the benefits of these laws in the past according to a knowledgeable personal injury attorney Newport Beach.

Schulman believes that by letting rideshare companies continue to operate in the way they have been, it can create a new wave of other technology businesses doing the same thing. Were this to happen, Schulman notes that these workers would be deprived of their basic employment rights granted by employment laws and state labor laws. He believes that taking action now against the practices of rideshare companies, he can stop the other companies from taking up this business model.

The Missing Benefits
According to ridesharing accident attorneys Newport Beach, Assembly Bill 5 was passed late last year to address the ‘gig’ worker status of rideshare drivers. This new law created restrictions that made it more difficult for companies to hire workers as independent contractors instead of having them as true employees. Uber, Lyft, and Postmates refused to comply with this gig economy law. This left independent contractors, known better as their drivers, without health insurance, paid sick leave, paid family leave, and workers’ compensation.

Many Lyft accident lawyers Newport Beach believe that rideshare companies are unlawfully misclassifying their drivers and this is a big step towards stopping that misclassification. Many notate the central importance of drivers in the operation of these ridesharing company services. The drivers are not tangible to business operations. Rather, they’re essential according to ridesharing accident attorneys Newport Beach.

10 Days Until It’s Official
Any injury attorney Newport Beach will reveal that ridesharing companies are given a 10-day leeway where they can alter operations to conform with the new ruling. Currently, both Uber and Lyft have asked the court to delay this ruling until November. They believe that voters should be able to determine whether or not the drivers should be independent contractors.

Uber accident lawyers Newport Beach believe that this will greatly devastate the economic community in California. When gig workers become full-time employees, it will result in the layoff of thousands of drivers. This will also drive the prices up for riders. Lyft accident lawyers Newport Beach are consistently watching the environment surrounding this case as its long-term effects can be devastating for California residents.