Uber Technologies Inc (NYSE: UBER) was in the green in Monday’s session, and was also gaining in pre-market trading. This comes after the company got a favorable ruling from the courts in California. The District Judge, Edward Chen yesterday declined to declare that drivers were Uber employees from their current status of contractors. This means that Uber has escaped the increased costs of labor that would have come with employees’ pay and benefits.
Nonetheless, the judge did not dismiss the case, and it now acts as a test to the Californian law that takes aim at the gig economy where Uber is one of the most significant players. The judge stated that, the case had a plausible claim and that any misclassifications by Uber are willful on its part.
The new law, signed by Governor Gavin Newsom two months ago, states that workers can be classified as contractors if they do their duties outside a company’s course of business. According to legal experts, the new law weakens the case for Uber to classify its employees as contractors, especially after the judge failed to throw out the case.
On top of that, the lawyer representing Uber drivers wants to refile a complaint. The lawyer has stated that, the law on contract workers that comes into law in January was passed to stop companies like Uber from misclassifying their employees.
In other news, Uber co-founder continues to sell shares in the company. So far, he has unloaded $2.1 billion of the company stock. In the past month, he has unloaded $350 million of the stock.
In yesterday’s session, the stock was trading between $29.10 and $30.11 and closed the day at $30.05. Volumes in the day stood at 54,271,630.
About Uber Technologies Inc
Uber Technologies is a technology company that is most known for its ridesharing services. The company is headquartered in San Francisco, California.