Uber's Chief Executive Officer is warning that the ride-sharing company may stop operating in California if forced to treat drivers as employees instead of private contractors.
Dara Khosrowshahi's comments come after a ruling by a California Superior Court judge to comply with the state's new employment law. That law, which is better known as AB-5, makes it tougher for businesses to classify workers as independent contractors. Khosrowshahi says having workers classified as independent contractors allows the company to offer flexibility, but union leaders and some elected officials have said Uber other companies count on that type of labor as a way to avoid complying with basic employee protections like a minimum wage and overtime pay.
Both Uber and ride-sharing competitor Lyft are banking on passage by voters a ballot measure that would exempt the gig companies from AB-5. That measure will be decided in the November election.