Uber, Lyft drivers are employees -California judge

A California judge blocked Uber and Lyft from classifying their drivers as independent contractors rather than employees.

The ruling is a blow to the ride-hailing companies, which have long argued that the drivers work for themselves as independent contractors.

The State of California and a number of cities, including Los Angeles, sued Uber and Lyft, accusing them of violating a new state law requiring companies to classify workers as employees if they controlled how workers did their jobs.

In a 34-page decision on Monday the judge found that there was an “overwhelming likelihood” that the companies have been misclassifying their drivers as contractors rather than employees based on the law.

The judge delayed enforcing his order for 10 days to allow appeals, which Lyft said it will pursue.

In November, California voters will vote in a referendum on whether app-based drivers should continue being classified as contractors.

The state is Uber's and Lyft's largest U.S. market.