By Preetika Rana
Uber Technologies Inc. and Lyft Inc. are misclassifying their workers as independent contractors and need to treat them as employees according to state labor law, a California appeals court said Thursday, affirming a lower court ruling from August that threatened to upend the companies' business models.
Uber and Lyft would need to comply with the reclassification within 30 days of a formal ruling, which could take several weeks.
The companies, along with DoorDash Inc., Postmates Inc. and Instacart Inc., have raised more than $189 million for a ballot initiative on Nov. 3, asking that voters exempt them from such a reclassification. That result would supersede any court rulings.
(More to come.)
Write to Preetika Rana at preetika.rana@wsj.com
(END) Dow Jones Newswires
10-22-20 2147ET