LOS ANGELES (CNS)—In a ruling stemming from a lawsuit brought by the city attorneys of Los Angeles and two other cities and the state of California, a federal judge Aug. 10 granted a preliminary injunction against ride-hailing companies Uber and Lyft, requiring them to classify their drivers as employees rather than independent contractors in accordance with a new state law.
San Francisco-based Judge Ethan P. Schulman ruled in favor of California Attorney General Xavier Becerra, and the city attorneys of Los Angeles, San Diego, and San Francisco, in their lawsuit alleging Uber and Lyft have misclassified their drivers, preventing them from receiving “the compensation and benefits they have earned through the dignity of their labor.”