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Uber Likely to Shut Down in California Unless Drivers Remain Non-Employees, CEO Says

Uber Likely to Shut Down in California Unless Drivers Remain Non-Employees, CEO Says

In a Wednesday interview with MSNBC, Uber (NYSE: UBER) CEO Dara Khosrowshahi told interviewer Stephanie Ruhle that the ride-hailing service would probably temporarily shut down its California operations if it was forced to classify its drivers as employees. One of the best-known "gig economy" companies, Uber normally classifies its drivers as independent contractors, thus avoiding certain regulations and costs. Uber has argued that it merely provides and maintains the platform -- the smartphone app and underlying technology -- that allows drivers to connect with customers, and thus drivers' work is "outside [Uber's] usual course of business," a key test for determining whether a gig worker must be classified as an employee under Assembly Bill 5.