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 new ruling, which comes in response to a request from California's attorney general, gives the companies 10 days to appeal the decision before it goes into effect. They hope to use that appeal to get a longer stay on the ruling.