Uber and Lyft say they will have to shut down in California if court upholds employee ruling

Uber CEO Dara Khosrowshahi says the ride-sharing company could be forced to shut down service in California for several months if a state court does not overturn a ruling requiring it to classify its drivers as full-time employees. Uber CEO Dara Khosrowshahi is pictured in an MSNBC interview on Wednesday, where he warned that the ride-sharing company could be forced to shut down service in California for several months if a state court does not overturn a ruling requiring it to classify its drivers as full-time employees Khosrowshahi warned that restructuring its operations in California would result in 'much smaller service much higher prices', hurting both drivers and customers. A judge on Monday ordered Uber and Lyft to classify their drivers as employees instead of contractors after California sued the ride-sharing giants for violating state law In a 34-page decision faulting the money-losing companies' 'prolonged and brazen refusal' to comply with state law, Schulman said the plaintiffs showed an 'overwhelming likelihood' they could prove Uber and Lyft classified drivers illegally. After their injunction was granted on Monday, Feuer said: 'This is a resounding victory for thousands of Uber and Lyft drivers who are working hard - and, in this pandemic, incurring risk every day - to provide for their families' Hours before the ruling was handed down, Uber outlined proposals for a new type of relationship with gig workers, including its own drivers, that would allow them to keep their independence as freelancers while also receiving benefits. Khosrowshahi penned an op-ed in the New York Times on Monday calling for all gig economy companies to establish benefit funds for their workers Khosrowshahi echoed the arguments Uber made in response to the California lawsuit, saying that the requirement to classify drivers as employees would leave fewer jobs and dramatically increase costs.