A California judge has just issued an injunction preventing Uber and Lyft forbidding the Gypsy cab companies from treating their drivers as independent contractors:

A California judge has issued a preliminary injunction that would block Uber and Lyft from classifying their drivers as independent contractors rather than employees.

The move on Monday came in response to a May lawsuit filed by the state of California against the companies, which alleged they are misclassifying their drivers under the state’s new labor law.

That law, known as AB5, took effect on 1 January. The strictest of its kind in the US, it makes it more difficult for companies to classify workers as independent contractors instead of employees who are entitled to minimum wage and benefits. The lack of workers’ compensation and unemployment benefits for drivers has become increasingly urgent during the coronavirus pandemic, as ridership plunges and workers struggle to protect themselves.

California is the largest market in the US for Uber and Lyft and the state where both companies were founded.

The lawsuit, and Monday’s injunction, are the most significant challenges to the ride-hailing companies’ business model thus far. Judge Ethan Schulman of the San Francisco superior court delayed enforcing his order by 10 days to give the companies a chance to appeal.

Uber, and to a slightly smaller degree Lyft, have shifted their cost onto the rest of us by not paying workers’ comp, not paying unemployment insurance, not paying their portion of FICA, not vetting their drivers properly, increasing congestion, etc.

They need to pay their fair share, and allowing them to ignore the law, “Because ……… Internet,” means that the rest of us are subsidizing their businesses.