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Photo: ROBYN BECK/AFP via Getty Images

Uber and Lyft must reclassify their California drivers as employees under a preliminary injunction granted Monday by a San Francisco judge.

Why it matters: The ride-hailing companies, along with other gig economy firms, are resisting classifying their drivers as employees, which labor advocates say would give the workers greater benefits and rights. A new California law codified stricter requirements before companies can classify workers as contractors.

  • The companies are also behind a California ballot measure that would keep drivers as contractors and provide them with some benefits.
  • The new ruling, which comes in response to a request from California's attorney general, gives the companies 10 days to appeal the decision before it goes into effect. They hope to use that appeal to get a longer stay on the ruling.

From Uber:

"The court’s ruling is stayed for a minimum of 10 days, and we plan to file an immediate emergency appeal on behalf of California drivers. The vast majority of drivers want to work independently, and we’ve already made significant changes to our app to ensure that remains the case under California law. When over 3 million Californians are without a job, our elected leaders should be focused on creating work, not trying to shut down an entire industry during an economic depression."
— Uber spokesperson

From Lyft:

"Drivers do not want to be employees, full stop. We’ll immediately appeal this ruling and continue to fight for their independence. Ultimately, we believe this issue will be decided by California voters and that they will side with drivers."
— Lyft spokesperson

Go deeper

Lyft touts California ballot victory amid mixed Q3 results

Illustration: Lazaro Gamio/Axios

Lyft posted a much larger loss than analysts expected, though it beat revenue estimates, in its third quarter results reported Tuesday. But on a call with analysts, the company pointed to its recent legislative victory in California and the potential it sees in expanding its foray into delivery as signs of better times ahead.

Why it matters A week ago, Lyft and other gig companies got California voters to back a ballot proposal that cements their drivers' status as independent contractors, which is central to the companies' business models.

Scoop: Border officials project 13,000 child migrants in May

The "El Chaparral" border crossing at Tijuana. Photo: Stringer/Picture Alliance via Getty Images

A Customs and Border Protection staffer told top administration officials Thursday the agency is projecting a peak of 13,000 unaccompanied children crossing the border in May, sources directly familiar with the discussion told Axios.

Why it matters: That projection would exceed the height of the 2019 crisis, which led to the infamous "kids-in-cages" disaster. It also underscores a rapidly escalating crisis for the Biden administration.

3 hours ago - World

U.S. strikes Iran-backed militia facilities in Syria

President Biden at the Pentagon on Feb. 10. Photo: Alex Brandon - Pool/Getty Images

The United States on Thursday carried out an airstrike against facilities in Syria linked to an Iran-backed militia group, the Pentagon announced.

The state of play: The strike, approved by President Biden, comes "in response to recent attacks against American and Coalition personnel in Iraq, and to ongoing threats to those personnel," Pentagon press secretary John Kirby said in a statement.

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