Uber Technologies Inc. and Lyft Inc. have said they may suspend their ride-hailing operations in California as soon as Friday, escalating a high-stakes battle with their home state over how their drivers should be classified. As employees, drivers would be eligible for sick days and other benefits, issues that have become more pressing during the coronavirus pandemic. A state judge agreed with California last week and gave the companies until Friday to reclassify their drivers as employees. Uber Chief Executive Dara Khosrowshahi and Lyft President John Zimmer have said they would rather suspend operations in the state than upend their businesses overnight. Residents of California will be able to express their opinion through a ballot initiative in the November election that asks voters to exempt Uber and Lyft from the law at the heart of the continuing dispute.

Source: Wall Street Journal August 19, 2020 14:38 UTC