Uber CEO Dara Khosrowshahi announced Wednesday (August 12) that the San Francisco-based company will likely shut down service in California temporarily if it's forced to classify its drivers as full-time employees. The announcement comes after a judge ordered Uber and Lyft to treat their California drivers as employees instead of independent contractors. If passed, this would guarantee benefits such as overtime, sick leave, and expense reimbursement for workers who make up much of the commuting economy.
Khosrowshahi shared in an interview on Wednesday,
"If the court doesn't reconsider, then in California, it's hard to believe we'll be able to switch our model to full-time employment quickly," the company also added, “Because Uber will almost certainly need to shut down the Rides app while it builds these departments and systems, millions of drivers who use the app to earn vital income will likely lose that opportunity the day the injunction goes into effect—and that source of income will be lost for months, at least.”
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