Uber and Lyft drivers are now employees under California law, according to a new ruling from regulators
Tuesday that drivers for Transportation Network Companies , which include services like Uber and Lyft, are considered employees under AB-5, the state's hotly debated new gig work law.
The ruling from CPUC, the agency in charge of regulating ride-hail companies, marks a significant development in the battle over the employment status of tens of thousands of gig workers in California. "CPUC's presumption is flawed; drivers are correctly classified as independent contractors and overwhelmingly want to remain independent contractors," a Lyft spokesperson told Business Insider. "Forcing them to be employees will have horrible economic consequences for California at the worst possible time."
Ride-hailing companies like Uber and Lyft have been at the center of AB-5, which went into effect this year and made it more difficult for companies to classify employees as independent contractors.
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