California lawmakers may force ride-sharing companies to treat drives as employees

California lawmakers are about to codify a 2018 California Supreme Court decision regarding the misclassification of ride-hailing drivers as contractors. Uber and Lyft have public reacted by stating that the new legislation would jeopardise their business model. Both companies agree to basic commitments in exchange for a guarantee that their drivers would not have employment status. Uber and Lyft compromise on increasing driver earnings and benefits; the creation of an appeals board where drivers could contest being barred from the platforms; and authorising a worker association where drivers would collectively bargain. Uber and Lyft have spent more than US$2 million on lobbying in California since 2017. Both companies plan to urge drivers to put pressure on lawmakers against the legislative proposal.