A California judge on Monday ruled that the ride-hailing companies Uber and Lyft have to classify their drivers in the state as employees, not independent contractors.
AB5, a new California labor law that went into effect Jan. 1, makes it harder for companies to misclassify workers who should be considered employees, and thus eligible for minimum wage and overtime. California is the largest market in the U.S. for Uber and Lyft, and in May, the state filed a lawsuit against the companies, accusing them of violating AB5.
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