- The state's attorney general is planning to file an injunction against the companies that would require them to make the change while they await the outcome of a lawsuit over drivers' employment status.
- California and several city attorneys general sued Uber and Lyft in May, alleging that the companies miscategorized drivers under the states' new gig work law, AB-5.
- Uber and Lyft have aggressively defended their stance that drivers are contractors and argued that making them employees would hurt their business model, put many drivers out of work, and raise prices for consumers.
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California will seek to force Uber and Lyft to reclassify drivers as employees within weeks, the San Francisco Chronicle reported Wednesday.
California is planning to file court documents on Wednesday that could force Uber and Lyft to reclassify drivers as employees within weeks, the San Francisco Chronicle reported.
State Attorney General Xavier Beccera plans to seek a preliminary injunction against Uber and Lyft, which if a court agrees to, would require them to grant drivers employment status while they await the outcome of a pending lawsuit over the issue, according to the San Francisco Chronicle.
In May, Becerra and city attorneys general from Los Angeles, San Francisco, and San Diego sued Uber and Lyft , accusing the ride-hailing companies of miscategorizing their drivers as independent contractors under the state's gig work law, AB-5.
Earlier this month, the state regulator that oversees Uber and Lyft ruled that drivers are considered employees under the law.
Both rideshare giants have aggressively defended their position and argued that requiring them to reclassify drivers would significantly impact their business model and force them to raise prices, while putting many drivers out of work.
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