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Uber and Lyft were ordered to convert their California drivers from independent contractors to employees with benefits, an early loss in a court battle the gig industry can’t afford to lose.
A judge’s ruling Monday won’t be the last word, as Uber and Lyft vowed to immediately appeal the preliminary injunction. If the companies are forced to reclassify their California drivers as employees, they would be on the hook for overtime, health care and other costly benefits.
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The state's top court ruled that Uber Technologies and Lyft can keep classifying California drivers as independent contractors.
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