Judge grants preliminary injunction requiring Uber and Lyft to stop classifying drivers as contractors

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Judge grants preliminary injunction requiring Uber and Lyft to stop classifying drivers as contractors
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Uber and Lyft still face new lawsuits by California's Labor Commissioner over alleged wage theft.

, which was created as a way to classify gig workers as full employees and ensure benefits from their employers. Uber and Lyft were among a group of tech companies that have previously opposed the bill, arguing their workers enjoy the flexibility of creating their own schedules as contractors.

California officials sought an injunction on the alleged misclassification and restitution for workers and civil penalties worth up to hundreds of millions of dollars.letter to President Donald Trump in March as the first round of coronavirus relief measures were being negotiated. He argued there should be a way for workers to gain protections without sacrificing the flexibility of contract work.

The ruling does not end the legal battles for Uber and Lyft, however. Last week, California's Labor Commissioner against the companies alleging wage theft due to misclassification. The commission seeks to recover wages it believes were owed to drivers currently classified as contractors. The suits were filed in Alameda County Superior Court.

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