“The idea that Uber is simply a software platform, I don’t find that a very persuasive argument,” U.S. District Judge Edward Chen said in court.
The judges’ statements are in response to lawsuits filed by Uber and Lyft drivers nationwide, though judges have narrowed the lawsuit to only include California drivers. The drivers allege violations of California labor and gratuity laws.
U.S. District Judge Vince Chhabria admitted on Jan. 29 that while the current legal taxonomy of job descriptions is “woefully outdated,” legal precedents may require him to rule in favor of the drivers. He has not yet issued a decision.
Uber and Lyft have been the target of lawsuits for several years from drivers, cities, and limo and taxi companies that have been threatened by the new service. Uber raised $1.2 billion in December at a valuation of $40 billion.