Drivers working for ride-hailing services such as Uber Technologies Inc and Lyft Inc will be considered employees under California’s new gig worker law, the state’s leading industry regulator said on June 11.
Shares in Uber and Lyft fell 5.3 percent and 4.2 percent, respectively, in early trading, with the new order striking at the heart of the “gig economy” business model of technology platforms like Uber and Lyft that rely on cheaper contract workers.
