Lyft is suspending operations in California at midnight Thursday due to changes in employee classification.
UPDATE: The California court has granted Lyft’s request for a further stay, so rideshare operations can continue uninterrupted, for now, according to the company.
At 11:59 p.m. Thursday, Lyft operations in California are expected to be suspended following a court ruling to require the rideshare service to follow stipulations in Assembly Bill 5 (AB 5), according to Lyft.
“This is not something we wanted to do, as we know millions of Californians depend on Lyft for daily, essential trips,” Lyft said in a statement. “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.”
Uber has announced similar moves due to the change, but no suspension of service has been official as of the publication of this story.
In May, the California Attorney General filed a lawsuit against Uber and Lyft claiming the rideshare companies were not following requirements outlined in AB 5.
Under AB 5, employers must prove their employees are not contractors by using the three-pronged “ABC Test.”
See Related: California Joins Major Cities In Lyft, Uber Lawsuit Claiming Workers Are Misclassified
On Aug. 10, a judge ruled in favor of the state and gave the rideshare companies until Aug. 20 to make changes to their operations.
There are about 100,000 rideshare drivers in the state of California, according to company estimates.
Lyft claims four out of five drivers don’t support the new employment model, according to their website.
“This change would also necessitate an overhaul of the entire business model — it’s not a switch that can be flipped overnight,’ Lyft said.
In November, Proposition 22 is on the ballot, which seeks to exempt rideshare and delivery drivers from Assembly Bill 5. The rideshare companies Uber and Lyft have funded the measure along with DoorDash and Instacart.
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California state government strikes again. Effectively kick people while they’re down, and force people out of work.