Uber and Lyft have a little more time before a California judge decides whether to continue working in the state as usual. After a three-hour hearing on Thursday, Judge Ethan Schulman said he would rule on an injunction against the two companies in "a few days".
The injunction comes from alCalifornia Attorney General Xavier Becerra files suit against Uber and Lyft in May. It was submitted in collaboration with city attorneys from San Francisco, Los Angeles and San Diego. The lawsuit alleges that the hail fighting companies "exploited hundreds of thousands of California workers" by classifying their drivers as independent contractors rather than employees - thereby violating California's AB 5 law.
For more of it
Subscribe to the CNET Now newsletter to receive the most important stories of the day from our editors.
An injunction would force companies to classify their drivers as employees. The state says that this will bring the necessary protection to workers. But Uber and Lyft say the move will shut down their businesses.
The debate about driver rights has been raging for years. Uber and Lyft classify their drivers as independent contractors, meaning that workers are responsible for expenses such as gasoline, car maintenance, and insurance. Drivers also have no benefits such as health care and sick leave. Last year, when California and other states pushed for more benefits and rights for drivers, the focus was on reclassifying drivers as employees.
During the hearing on Thursday, Judge Schulman heard from Uber and Lyft lawyers and a state representative.
"What we think is dramatic here is that these hundreds of thousands of workers are systematically denied worker protection," said Matthew Goldberg, a California attorney. "These are big companies with a lot of money."
Uber's lawyer, Theane Evangelis, said that Uber shouldn't necessarily be responsible for the drivers, as it is a technology platform and not a transportation provider. Lyft's attorney, Rohit Singla, cited surveys in which drivers said they wanted to remain independent contractors and said an injunction could dramatically affect thousands of people.
Judge Schulman said the decision was difficult without knowing exactly what the effect of an injunction would look like. "I feel like I'm asked to jump into a body of water without knowing how deep it is, how cold it is, and what will happen if I get in," he said.
This is not the only lawsuit that Uber and Lyft are facing for driver classification in California. California's Labor Commissioner Lilia García-Brower also sued the companies on Wednesday. The lawsuit alleges that Uber and Lyft commit pay theft by classifying their drivers as independent contractors rather than employees.
"This leaves workers with no protection, such as paid sick leave and reimbursement of driver expenses, overtime, and minimum wages," she said in a statement.
driver gathered in support of California lawsuits in cities across the state on Thursday. In caravans they drove past government buildings and the Uber and Lyft driver hubs. The drivers who attended these rallies said they wanted to be classified as employees in order to earn a living and receive basic labor rights.
"We are confident that the courts will make the right decision to protect workers," said Erica Mighetto, a San Francisco driver and organizer, in a statement. "Uber and Lyft have made it clear that unless things change, they will continue to rob workers and withdraw money from the state safety net. That's what we're fighting."
