Uber, Lyft win delay on court order forcing driver reclassification

An appeals court in California granted Uber and Lyft a stay on an injunction that would have forced the companies to reclassify drivers as employees Friday morning.

Why it matters: The stay came just 12 hours before the companies planned to suspend their ride-hailing services across California rather than comply with the injunction. They're now free to continue with business as usual while the appeal process plays out.

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From Uber:

We are glad that the Court of Appeals recognized the important questions raised in this case, and that access to these critical services won’t be cut off while we continue to advocate for drivers’ ability to work with the freedom they want

Uber spokesperson

From Lyft:

 While we won’t have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers. That’s the solution on the ballot in November, and it’s the solution drivers want because it preserves their ability to earn and to use the platform as they do now — whenever they want — while also getting historic new benefits. Without it, 80-90% of Californians who earn on app-based platforms will lose that opportunity.”

Lyft spokesperson

California attorney general Xavier Becerra, who filed the lawsuit the resulted in the injunction, tweeted:

REMINDER: Companies can both classify their workers as employees and continue fostering the innovation that we deeply value as a state.

For any company to suggest otherwise is a false choice.

— Xavier Becerra (@AGBecerra) August 20, 2020

Go deeper: Breaking down Uber and Lyft's threat to suspend services in California

Editor's note: The story has been updated with statements.