California court says Uber, Lyft drivers are employees

California

FILE- In this Jan. 31, 2018, file photo, a Lyft logo is installed on a Lyft driver’s car next to an Uber sticker in Pittsburgh. Ride-hailing giants Uber and Lyft on Thursday, Aug. 20, 2020, are saying they will shut down their California operations if a new law goes into effect overnight which would force both companies to classify their drivers as employees. (AP Photo/Gene J. Puskar, File)

SAN FRANCISCO (AP) — A California appeals court on Thursday upheld an order requiring Uber and Lyft to treat their California drivers as employees instead of independent contractors, less than two weeks before voters will be asked to exempt the ride-hailing giants from the state’s gig economy law.

The decision won’t have any immediate impact because it doesn’t take effect for at least 30 days, well after the Nov. 3 vote on Proposition 22.

Uber and Lyft and DoorDash, who heavily bankrolled the measure, had appealed an August preliminary injunction by a San Francisco judge. But the appellate ruling found “no legal error” and allowed it to stand.

“We conclude that the injunction was properly issued in accordance with enduring principles of equity,” the 74-page ruling said. “It is broad in scope, no doubt, but so too is the scale of the alleged violations.”

Uber and Lyft issued statements noting that the ruling doesn’t take immediate affect and urging voters to approve Prop. 22. Lyft also said it also is considering appealing to the California Supreme Court.

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