Uber CEO Dara Khosrowshahi is warning that a landmark California ruling on the employment status of its drivers could force the company to shut down its service in California until November.
“We think we comply by the laws,” Khosrowshahi said on MSNBC. “But if the judge and the court finds that we’re not, and they don’t give us a stay to get to November, then we’ll have to essentially shut down Uber until November when the voters decide.”
Last year, California’s legislature passed legislation designed to force Uber and other “gig economy” companies to treat their drivers as employees rather than independent contractors. That could entitle the workers to minimum wage protections, reimbursement for expenses, unemployment insurance, and other benefits.