California Appeals Court Says Uber and Lyft Must Classify Drivers as Employees

A California appeals court on Thursday affirmed a trial court ruling requiring Uber Technologies (NYSE: UBER) and Lyft (NASDAQ: LYFT) to classify their drivers as employees instead of independent contractors. The court previously granted the ridesharing companies a stay from complying with the law pending a review, but now says they must follow the law and gave them 30 days from when the case is officially sent back to the trial court to fall in line. California Assembly Bill 5 (AB 5) orders that most state independent contractors be reclassified as employees and receive the same benefits awarded regular employees.