patrick.net

SAN FRANCISCO—Uber CEO Dara Khosrowshahi said the company is likely to shut down temporarily for a few months in California if a new court ruling stating they must classify all of their drivers as full-time employees is not overruled.

On Monday Uber and Lyft, both modern, popular choices for transportation for the public, were ordered by a California judge to brand all of their drivers as full-time employees of their companies, while up until now they have been considered independent contractors.

“If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” Khosrowshahi told MSNBC Wednesday morning.

The ruling made by San Francisco Superior Court Judge Ethan P. Schulman will not go into effect immediately, as both companies have stated they will be appealing to a higher court in hopes of overturning Schulman’s verdict.