Drivers working for ride-hailing services such as Uber Technologies Inc and Lyft Inc will be considered employees under California’s new gig worker law, the state’s leading industry regulator said on Thursday.
The decision, by the California Public Utilities Commission (CPUC), which regulates ride-hailing companies across the state, comes six months after a state law took effect that makes it tougher for companies to classify workers as contractors rather than employees. The latter designation exempts them from paying for overtime, healthcare and workers’ compensation.
This looks like it’s done, but the two sides have been battling for the last few years on the issue. I wouldn’t be surprised to see more lawsuits in the future.