USA :Uber threatens to stop operating in California after a contrary court ruling

San Francisco, Aug 12 (EFE) .- The shared transportation company Uber, headquartered and one of its main markets in California (USA), threatened this Wednesday to temporarily stop operating in that state if Justice does not ” reconsiders “a ruling contrary to the interests of the company.

In an interview on the economic channel CNBC, Uber CEO Dara Khosrowshahi said that the company will likely “close temporarily for several months” if the decision that forces it to formally hire its drivers, who are currently autonomous.

“If the Court does not reconsider, it is difficult to imagine that we will be able to change our full-time model in California quickly,” Khosrowshahi said.

Last Monday, San Francisco Superior Court Magistrate Ethan Schulman issued an order that forces ride-sharing companies like Uber and its competitor Lyft to classify their drivers as employees, which could skyrocket their personnel costs. two firms and question their business model.

The decision responds to a lawsuit filed by the Government of California and, therefore, is limited exclusively to that state, the most populous in the United States.

Classifying their drivers as salaried employees rather than contractors (their current status) would mean for Uber and Lyft, among other things, having to contract them, pay them a fixed salary and offer them benefits such as health insurance, vacation and sick days. .

In his ruling, the judge declared a ten-day moratorium starting this Monday until the order enters into force, thus giving companies enough time to appeal the decision if they consider it appropriate.

Since last January 1, it is mandatory by law in California that companies of the so-called collaborative economy such as Uber, Lyft or the delivery firm DoorDash formally hire those who offer services through them, instead of assigning them the status of independent contractors.

It is estimated that about one million people work as independent contractors in the sharing economy sector in California.

(c) EFE Agency