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Uber and Lyft Must Make Drivers Employees in California, Appeals Court Rules

The Californian appeals court found an “overwhelming likelihood” that the companies violated labor law by misclassifying drivers.

Uber and Lyft must reclassify their drivers as employees rather than independent contractors following a California appeals court ruling which found that there’s an “overwhelming likelihood” the companies violated labor law by misclassifying drivers. Back in May, California Attorney General Xavier Becerra sued Uber and Lyft, alleging that the companies were violating state law by treating their workers as contractors. Following Thursday’s ruling, he said: “Uber and Lyft have used their muscle and clout to resist treating their drivers as workers entitled to those paycheck and benefit protections... It's time for Uber and Lyft to play by the rules.” The change won’t happen instantly—the companies can appeal to the California Supreme Court, and Californians will vote on a proposition next month that would allow ride-hailing apps to keep their drivers as independent contractors, while giving them limited benefits.