SAN FRANCISCO: California's court of appeals has ordered ride-hailing company Uber and Lyft to classify their drivers as employees.
The court affirmed an injunction that was issued on August 10, requiring the two companies to classify their drivers as employees rather than freelancers, The Verge reported on Thursday.
It is unlikely that the ruling will go into effect before California voters decide on a controversial ballott initiative called California Proposition 22, or Prop 22, that aims to protect Uber and gig companies from classifying their drivers as employees.
However, driver groups and public officials celebrated the court ruling, but Uber and Lyft are considering taking the case to the state's Supreme Court, even as they explore their "appeal options," said the report.
Meanwhile, CNN Business on Thursday reported that some Uber drivers are suing the company alleging that Uber is "unlawfully" putting pressure on them and other drivers to support Prop 22.
The class-action lawsuit was filed on Thursday in a San Francisco Superior Court on behalf of two Uber drivers and two nonprofit organisations, said the report.
The lawsuit alleges that Uber is "exerting extreme and wrongful pressure on its drivers to vote for and advocate for the passage of Proposition 22" through its usage of in-app messaging.
Voters will decide the fate of Prop 22 on November 3.