“After the state passed a law broadly requiring more workers to be treated as employees, California Attorney General Xavier Becerra and city attorneys sued the ride-hailing firms this year, arguing they were violating the law by deeming their drivers to be independent contractors,” White reports. “Becerra went to court for an injunction immediately compelling the companies to treat their drivers differently.
California Attorney General Xavier Becerra talks during a news conference in Sacramento, Calif. | AP Photo/Rich PedroncelliSchulman decided on Monday to grant the state's request for an injunction — despite pushback from Uber and Lyft, which are also backing a ballot initiative to enable ride-hail and other leading gig companies to continue treating their workers as contractors, rather than employees.White writes “the results could be seismic” for the firms’ business models. But “the injunction doesn’t take effect for 10 days — a window Uber and Lyft immediately said they would use to file legal challenges.
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