California appeals court rules Uber, Lyft must reclassify drivers as employees

A California appeals court on Thursday unanimously ruled against ride-hailing companies Uber Technologies Inc and Lyft Inc, saying they must reclassify their drivers in the state as employees.

While the ruling does not take effect before a Nov. 3 company-sponsored ballot measure that will give voters the chance to decide over the future status of gig workers, it narrows the companies’ options should their ballot fail.

The case emerged after California implemented a law, known as AB5, aimed at reclassifying ride-hail, food delivery and other app-based workers as employees entitled to benefits such as unemployment insurance and minimum wage.