Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Illustration: Lazaro Gamio/Axios
A California appeals court Thursday said Uber and Lyft have to reclassify their drivers in the state as employees, affirming a lower court's ruling.
Why it matters: The companies are fighting a new state law, at the center of this lawsuit, that imposes stricter requirements in order to classify workers as independent contractors.
Flashback: In May, California's attorney general, along with city attorneys for San Francisco, Los Angeles and San Diego, sued Uber and Lyft over the companies' classification of drivers are independent contractors instead of employees.
- California's new law, known as AB5, went into effect in January. It codifies a state supreme court decision from 2018.
What they're saying:
- From Uber: "Today’s ruling means that if the voters don’t say Yes on Proposition 22, rideshare drivers will be prevented from continuing to work as independent contractors, putting hundreds of thousands of Californians out of work and likely shutting down ridesharing throughout much of the state. We’re considering our appeal options, but the stakes couldn’t be higher for drivers—72% of whom support Prop 22—and for the California economy, where millions of people are jobless and another 158,000 just sought unemployment support this week."
- From Lyft: "“This ruling makes it more urgent than ever for voters to stand with drivers and vote yes on Prop. 22.”
The other side: "Californians have fought long and hard for paycheck and benefit protections," said California attorney general Xavier Becerra in a statement. "Uber and Lyft have used their muscle and clout to resist treating their drivers as workers entitled to those paycheck and benefit protections.”
What's next: The injunction, forcing the reclassification, will go into effect 30 days after the issuance of the remittitur (the official handing back of jurisdiction to the lower court). This is not expected to happen before November's election.
Editor's note: The story has been updated with statements from the companies and additional information.