Ruling deals blow to firms’ battle against AB5, which requires companies give California drivers minimum wage and benefits
A California appeals court has ruled that Uber and Lyft broke the law by misclassifying drivers as contractors rather than employees, a huge blow to the ride-hailing firms as they battle to protect their business model.
Uber and Lyft had previously threatened to shut down their services pending the decision, which would enforce a new labor law known as AB5. The law, which went into effect in January, requires companies to classify drivers as employees and provide them with a minimum wage and benefits.
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