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Labor/Employment

Aug. 27, 2020

Franchise industry dubious about Uber joining them

The preliminary injunction, which has since been stayed by a court of appeal, required the companies to start complying with Assembly Bill 5 by reclassifying their drivers as employees instead of as independent contractors.

Franchise industry dubious about Uber joining them
A protestor dressed as a baby cheers a caravan of Uber and Lyft drivers during a demonstration outside of Uber's headquarters in San Francisco on Thursday, Aug. 20. (New York Times News Service)

Stakeholders in the franchise industry are not convinced Uber could pull off a franchise model in California, but their bigger concern is how Uber's rebrand might impact efforts to secure an exception to the state's gig worker law.

Reports that Uber and Lyft are considering franchise models have circulated since a San Francisco judge issued a preliminary injunction against the companies on Aug. 10. The preliminary injunction, which h...

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