Great Britain

Uber and Lyft must classify drivers as employees, judge rules, in blow to gig economy

A California judge has issued a preliminary injunction that will block Uber and Lyft from classifying their drivers as independent contractors rather than employees.

The move on Monday came in response to a May lawsuit filed by the state of California against the companies, which alleged they are misclassifying their drivers under the state’s new labor law. The lawsuit, and Monday’s injunction, are the most significant challenges to the ride-hailing companies’ business model thus far.

Judge Ethan Schulman of the San Francisco superior court delayed enforcing his order by 10 days to give the companies a chance to appeal.

More details soon …

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