Labor department considers new independent contractor definition, could be used to federally challenge AB 5

The U.S. Department of Labor (DOL) is revising its interpretation of independent contractor status under the Fair Labor Standards Act (FLSA), which could open the door for federal challenges to Assembly Bill (AB) 5. “Once finalized, it will make it easier to identify employees covered by the Act, while respecting the decision other workers make […]

Why Uber’s business model is doomed

Having threatened to pull out of California completely, Uber and Lyft recently won a temporary reprieve from orders to reclassify their drivers as employees rather than independent contractors. The companies argued they could not come up with a plan for doing so overnight, even though more than two years have passed since California’s supreme court ordered them […]

Waitr settling former driver class action lawsuit and to give 1.5M stock, not cash

After 18 months in the legal system, Waitr Holdings Inc. is in the final stages of settling a class action lawsuit brought against the company by delivery drivers who claimed they were not paid at least minimum wage in violation of federal law. The value of the settlement could be roughly $7.4 million and the […]

Just Eat to stop using gig economy workers

The boss of one of the world’s biggest food delivery platforms has told the BBC he intends to end gig working at his company across Europe. Jitse Groen, who runs Just Eat Takeaway, says he would rather run his company with staff who get benefits and more workplace protection. It is the model he has […]

Uber and Lyft lose bid to delay worker reclassification order in California

Uber  and Lyft have lost their bid to delay a preliminary injunction that will force the two ride-hailing app companies to reclassify drivers as employees. A California superior court judge denied Thursday the companies request to delay the order from going into effect August 20. The decision sets the stage for a legal fight and will most […]

Lyft joins Uber in threatening to pull out of California over driver status

yft said it would shut down operations in California if forced to classify drivers as employees, the company’s executives said in an earnings call with investors on Wednesday. Lyft joins Uber in threatening to pull out of one of its most important US markets over the question of drivers’ employment status. At issue is the classification of […]

Uber’s California Shutdown Threat Won’t Impact Its Real Money Maker: Uber Eats

A fight over worker classification could prompt Uber to “shut down” in the state of California, company CEO Dara Khosrowshahi said in a TV appearance. That might sound like a big deal, but there’s an aspect to this threat worth noting: Uber has no plans to cease California operations of Uber Eats, a spokesperson confirms […]

California Judge Orders Uber and Lyft to Reclassify Drivers as Employees

A California judge late Monday ordered that Uber and Lyft must reclassify their drivers as employees. This preliminary injunction is stayed for 10 days, during which time Uber and Lyft can file an appeal. Both companies have said they will do so. This week’s order comes after California Attorney General Xavier Becerra and city attorneys in California sued […]

Judge orders Uber, Lyft to classify California drivers as employees for now

A San Francisco Superior Court judge dealt Uber and Lyft a significant blow Monday, issuing a preliminary injunction that requires the companies to temporarily classify their drivers as employees while the state’s lawsuit against them is heard. Judge Ethan Schulman issued the ruling after hearing arguments in the preliminary injunction request Thursday. The case stems […]

GrubHub Ruling Draws New Line in Battles Over Driver Arbitration

Seventh Circuit clarifies when drivers engage in ‘interstate commerce’ Courts uphold arbitration pacts for local drivers, not ‘last mile’ workers If local Grubhub Inc. drivers deliver a restaurant’s desserts made from chocolate that traveled all the way from Switzerland, should that be enough to keep their wage claims in court? The Seventh Circuit recently said no, drawing […]