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Uber and Lyft faced tough questions from California judges as they seek to keep classifying drivers as contractors



Dara Khosrowshahi, Logan Green are posing for a picture: Uber CEO Dara Khosrowshahi and Lyft CEO Logan Green Laura Buckman/Reuters; Carlo Allegri/Reuters


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Uber CEO Dara Khosrowshahi and Lyft CEO Logan Green Laura Buckman/Reuters; Carlo Allegri/Reuters

  • A California appeals court heard arguments on Tuesday from Uber and Lyft as they appeal a recent ruling that would force the companies to reclassify drivers as employees.
  • A lower court determined in August that Uber and Lyft drivers are employees, not contractors, under the state’s gig work law, AB-5, but delayed enforcing the ruling while the companies appeal it.
  • Uber, Lyft, and other gig companies have fought AB-5 aggressively, pouring more than $180 million into a ballot measure aimed at California voters that would permanently exempt them from the law.
  • The companies argue reclassifying drivers as employees will reduce their flexibility, while proponents of AB-5 say Uber and Lyft’s business models rely on underpaying drivers and skirting labor laws. 
  • Visit Business Insider’s homepage for more stories.

A California appeals court heard oral arguments Tuesday from Uber, Lyft, and the state over whether a lower court reached the right conclusion in August when it ruled that the companies’ drivers are employees under the state’s gig work law, AB-5.

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Judges from California’s first district Court of Appeal pressed lawyers for Uber and Lyft over drivers’ wages and autonomy, and questioned the companies’ arguments that AB-5 would require them to reduce drivers’ flexibility, according to The Washington Post and The New York Times reporter Kate Conger.

The judges also asked a lawyer for the state about potential harms to Uber and Lyft and drivers’ preferences around their employment status, according to reports.

The landmark case could fundamentally alter the contractor-based business model that Uber and Lyft have relied on, and the companies are aggressively fighting the law in court and via a ballot measure that California voters will decide on in

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UK mortgage approvals hit 13-year high, as firms warn of tough times – business live | Business

A Greggs bakers store in Cardiff, south Wales, at the start of the lockdown

A Greggs bakers store in Cardiff, south Wales, at the start of the lockdown Photograph: Geoff Caddick/AFP via Getty Images

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

A swathe of UK companies are reporting today that Covid-19 continues to hurt their businesses, more than six months after the UK first imposed restrictions to battle the pandemic.

High street baker Greggs has warned that staff faced reduced hours, and potentially job cuts, as it tries to cut its employment costs.

Greggs, famous for its steak bakes, sausage rolls and new vegan offerings, reports that like-for-like sales in September are only 76.1% of the 2019 levels (an improvement on a ‘slow’ August).

With the government’s furlough scheme wrapping up in a month (replaced by a less generous wage subsidy package), Greggs says it must make cuts:


With business activity levels remaining below normal for the foreseeable future we must change the way we work to be as productive and flexible as we can in order to protect as many jobs as possible for the long term. We have completed a review of our activity and requirements in every part of the business and are now proposing a series of changes which are the subject of a collective consultation with union and employee representatives.

Our aim is to minimise the risk of job losses by negotiating reduced hours in our shops and we will update on the outcome of the consultation when concluded.

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Newcastle based Greggs say they plan to cut staff hours to “minimise the risk of job losses”.

This is when the furlough scheme ends next month.

The chain say though, sales have picked up over the past month as it continues its recovery following

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