SAN FRANCISCO (KRON) – Lyft is suspending service in California effective 11:59 p.m. Thursday, the company announced in a blog post.
This comes after a court granted a preliminary injunction last week requiring it to reclassify drivers as employees.
Uber has not made a formal announcement yet about suspending service in California.
Lyft had originally vowed to work with the attorney general and other officials to “bring all the benefits of California’s innovation economy to as many workers as possible, especially during this time when the creation of good jobs with access to affordable health care and other benefits is more important than ever.”
The lawsuit was filed by California Attorney General Xavier Becerra and the city attorneys of Los Angeles, San Diego and San Francisco under a new California law that says companies can only classify workers as contractors if they perform work “outside the usual course” of their business.
The state’s lawsuit alleges that Uber and Lyft haven’t paid enough payroll taxes as a result of the misclassification. The suit seeks restitution for unpaid wages owed to drivers, civil penalties and a permanent ruling that would prohibit the companies from misclassifying drivers in the future.
This is a developing story. Check back for updates.
The Associated Press contributed to this report.
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