Uber and Lyft must reclassify their California drivers as employees under a preliminary injunction granted Monday by a San Francisco judge.
Why it matters: The ride-hailing companies, along with other gig economy firms, are resisting classifying their drivers as employees, which labor advocates say would give the workers greater benefits and rights.
A new California law codified stricter requirements before companies can classify workers as contractors.
The companies are also behind a California ballot measure that would keep drivers as contractors and provide them with some benefits.
"The court’s ruling is stayed for a minimum of 10 days, and we plan to file an immediate emergency appeal on behalf of California drivers.
The vast majority of drivers want to work independently, and we’ve already made significant changes to our app to ensure that remains the case under California law.
Ultimately, we believe this issue will be decided by California voters and that they will side with drivers.". »
