A big blow to Uber and Lyft as a California regulator ruled that the state will consider drivers working for ride-hailing services as employees, not contractors, under its new gig worker law
) will be considered employees under California’s new gig worker law, the state’s leading industry regulator said on Thursday.
The CPUC in an order on Thursday said it had to enforce state law, determining that drivers for transportation network companies , the industry term for ride-hailing operators, would be considered employees going forward. Uber in December sued to block the new law, known as AB5, arguing that it punished app-based companies and was unconstitutional.
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