Uber May Shut Down In California

Uber CEO Dara Khosrowshahi announced Wednesday (August 12) that the San Francisco-based company will likely shut down service in California temporarily if it's forced to classify its drivers as full-time employees.

"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 stated in an interview.

The announcement was made after a judge ordered Uber and Lyft to treat their California drivers as employees instead of independent contractors, which would guarantee benefits such as sick leave, overtime and expense reimbursement for workers who make up much of the commuting economy.

Photo: GettyImages.

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