SAN FRANCISCO (CBS SF) — A state appeals court ruled against Uber and Lyft on Thursday, upholding an injunction saying the ride-hailing giants must reclassify drivers as employees.
Thursday’s unanimous court decision comes as voters are deciding on Proposition 22, a ballot measure that would allow the companies to continue classifying drivers as independent contractors.READ MORE: UPDATE: Atmospheric River: I-880 Shutdown, Flooded Roadways, Damaged Homes, Massive Rockslides In Storm's Wake
“This decision makes it abundantly clear that Uber and Lyft have been breaking the law for years,” San Francisco City Attorney Dennis Herrera said in a statement. “The only thing ‘radical’ and ‘unprecedented’ is the scope of Uber and Lyft’s misconduct. This is a victory for the people of California and for every driver who has been denied fair wages, paid sick days, and other benefits by these companies.”
San Francisco, along with the cities of Los Angeles, San Diego and the State of California, sued Uber and Lyft alleging violations against recently-enacted Assembly Bill 5, claiming they “exploited hundreds of thousands of California workers” by classifying drivers as independent contractors instead of employees.READ MORE: Atmospheric River: High Winds Topple Trees, Scaffolding in San Francisco
The ride-hailing companies, along with DoorDash, have spent at least $180 million towards passing Proposition 22.
The court’s ruling is set to take effect in 30 days, after the November elections.MORE NEWS: Atmospheric River: Parts of San Mateo County Pummeled with Heavy Rain, Flooding
Election Day is November 3.