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- Lyft president John Zimmer said that the company may pause all operations in California if forced to comply with a recent court ruling ordering it to reclassify drivers as employees.
- Zimmer told investors during its earnings call Wednesday that California accounts for about 16% of its total rides.
- Regulators said the state's gig work law requires ride-hail companies like Lyft and Uber to treat drivers as employees and took them to court over their refusal to comply, and a court handed the companies a major defeat earlier this week.
- Both Lyft and Uber, whose CEO made a similar claim about suspending operations earlier Wednesday, have a long history of threatening to stop doing business in places where they oppose regulations.
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Lyft president John Zimmer warned that the company may temporarily stop operating in California due to a court ruling earlier this week ordering the ride-hailing giant to reclassify drivers as employees.
"If our efforts here are not successful it would force us to suspend operations in California," Zimmer told investors during Lyft's quarterly earnings call Wednesday, according to the San Francisco Chronicle.
See the rest of the story at Business Insider
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See Also:
- A California judge ruled that Uber and Lyft have to classify their drivers as employees, not contractors
- Uber CEO Dara Khosrowshahi says gig economy companies should be required to establish 'benefits funds' for workers instead of treating them as full-time employees
- Uber's CEO took a shot at labor groups, accusing them of being driven by 'politics' in the massive fight over drivers' employment status
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