Uber & Lyft will continue to operate in California

Uber and Lyft will keep operating in Riverside County and across California -- for now -- with a state appeals court today putting on hold a ruling requiring the ride-hailing companies to classify their drivers as employees instead of independent contractors.

Lyft driver, Jose Hernandez, started his day like usual picking up a nearby rider.

“I picked up somebody from Indio and brought them all the way to Palm Springs and I believe I made twenty dollars, just on that," said Jose Hernandez. "Its worth it.” 

Hernandez told us its usually smooth riding but this morning the announcement of the shutdown in California made him think it was going to be last time driving for a while. 

Lyft had announced in an online blog post on Thursday morning that it would be suspending its rideshare operations across California beginning at 11:59 p.m. due to an ongoing legal dispute over the classification of drivers as employees or independent contractors.

“Without this I wouldn’t have been able to pay that debt that I had," said Hernandez. "I am very grateful for the opportunity to have had this chance to drive and meet great people.” 

The legal battle continues as uber and lyft dispute over the classification of drivers as employees rather than independent contractors.  

“We are making a small little difference in this world by helping people giving them rides making their experience safe that’s one of things that's important,"said Hernandez.

Hernandez thinks he should be a contractor. 

“Being able to drive at your own convenience at your own time really does help,"said Hernandez. "Its really sad how some people don't agree, they want to make us employees, its going to take alot of our benefits away like our freedom.” 

But the state said both companies should classify drivers as employees. By doing this, it would mean that the drivers would be provided with sick leave, overtime pay and other benefits. 

“They just need to figure out what to do and not mess with people’s lives and I don’t think they realize they are messing with people’s lives and their source of income,"said Ariana Moreno, Lyft rider. "Its their livelihood.” 

“Hopefully they do come-up with an agreement soon so we can get some closure," said Hernandez.

The court scheduled oral arguments in the appeal for Oct. 13.

The companies have been fighting the change, which comes as a result of the passage of Assembly Bill 5 that took effect Jan. 1.

Uber notified drivers this week about the possible shutdown, “so you can plan accordingly.”

Uber and Lyft are also working to combat AB5 by sponsoring Proposition 22, a ballot initiative that, if approved by voters in November, would allow ride-hailing drivers to work as independent contractors.

The companies contend in part that classifying the drivers as employees would force them to work standard shifts and hours, instead of their current ability to work when they want.