Lyft will stop operating in California at midnight over state's gig economy law

by Bryan Brammer · Aug 20th, 2020 3:20 pm

Last Updated Oct 14th, 2020 at 2:44 pm

Lyft announced Thursday that it is suspending its service in California as of midnight local time due to a state injunction that requires the ridesharing company to reclassify its drivers as employees.

"At 11:59 p.m. PT today our rideshare operations in California will be suspended. This is not something we wanted to do, as we know millions of Californians depend on Lyft for daily, essential trips. We're personally reaching out to riders and drivers to share more about why this is happening, what you can do about it, and to provide some transportation alternatives," the company wrote in a blog post.

A court issued a preliminary injunction last week, which was stayed while both Lyft and Uber attempted to appeal the ruling.

Immediately following the injunction, both companies said they would be forced to shut down operations if they had to comply with the court's order.

Earlier in May, California sued the companies over driver classification, claiming they violated the state's gig economy legislation which came into effect at the first of the year.

? Come November, Californians will have the ability to vote on Proposition 22, which seeks to exempt ridesharing and delivery companies from reclassifying contractors as employees.


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