Uber and Lyft spend millions to bypass labor costs with CA’s groundbreaking gig worker law


In defiance of the soon-to-be-enacted California law which would transform gig economy workers from independent contractors to employees, Uber and Lyft are refusing to reclassify their employees. This tactic is questionable, given that the new law essentially codifies the California Supreme Court’s decision last year in Dynamex. Perhaps recognizing the futility of such court challenges, Uber and Lyft also are pooling their resources to put forth a referendum to the people of California.

Despite committing millions of dollars to these various challenges, the likely result will be some sort of compromise. There may even be a hybrid classification of gig economy workers, somewhere between employee and independent contractor. This potentially could have significant implications for American workers, both within California and beyond.

With the rapidly evolving developments in this critical area for workers, call the Shavitz Law Group at (561) 447-8888 or email us at info@shavitzlaw.com to ensure your rights are protected.