Uber and Lyft Threaten to Shut Down in California

OAKLAND, Calif. — Uber and Lyft threatened to suspend ride-hailing services throughout California on Thursday night, a defiant reaction to a judge who ordered the companies to reclassify their drivers as employees.

The ride-hailing blackout, which might begin at midnight Pacific Standard Time, could drag on for weeks, as Uber and Lyft battle a state labor law intended to give employment benefits to gig workers. An appeals court is weighing the companies’ requests to overturn the judge’s decision, but it is not clear when the court will issue a ruling.

State officials said the companies must comply with the law, known as Assembly Bill 5, so that workers have access to sick leave, overtime and other benefits — a need that has become more dire during the coronavirus pandemic.

But Uber and Lyft have argued that employing drivers would have a catastrophic impact on their businesses, forcing them to raise fares and hire only a small fraction of the drivers who currently work for them. They would temporarily shutter the businesses rather than comply, they said.