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Illustration: Rebecca Zisser/Axios

A group of Uber drivers, along with nonprofits Worksafe and the Chinese Progressive Association, have sued the ride-hailing company, arguing that in-app messages promoting a California ballot measure that would enshrine their status as independent contractors violate drivers' right to be free of political influence from their employer.

Why it matters: Uber and other gig-economy companies have poured nearly $200 million into the campaign, as classifying their workers as independent contractors instead of employees is central to their business models.

What they're saying: The drivers behind the suit "fear that if they do not cooperate by speaking out in favor of Prop 22 through the video messages, texts, and positive survey answers solicited by Uber, Uber will retaliate by giving them less favorable or less plentiful assignments, or no assignments at all," law firm Rudy, Exelrod, Zieff & Lowe, representing the drivers, says in a press release.

The other side: "This is an absurd lawsuit, without merit, filed solely for press attention and without regard for the facts," an Uber spokesperson says in a statement. "[T]he vast majority of drivers support Prop 22 and have for months because they know it will improve their lives and protect the way they prefer to work."

Editor's note: The story have been updated to note that two nonprofits are also plaintiffs in the case.

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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.

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Sen. Kelly Loeffler to return to campaign trail after 2nd negative test

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Sen. Kelly Loeffler's (R-Ga.) campaign announced Monday that she "looks forward to getting back out on the campaign trail" after testing negative for COVID-19 for a second time, following earlier conflicting results.

Why it matters: Loeffler has been campaigning at events ahead of a Jan. 5 runoff in elections that'll decide which party holds the Senate majority. Vice President Mike Pence was with her on Friday.

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Key government agency says Biden transition can formally begin

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General Services Administrator Emily Murphy said in a letter to President-elect Joe Biden on Monday that she has determined the transition from the Trump administration can formally begin.

Why it matters: Murphy, a Trump appointee, had come under fire for delaying the so-called "ascertainment" and withholding the funds and information needed for the transition to begin while Trump's legal challenges played out.