Uber and Lyft must classify drivers as employees, judge rules, in blow to economy of concerts | Technology

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A California judge has issued a preliminary injunction that will prevent Uber and Lyft from classifying their drivers as independent contractors rather than employees.The move came on Monday in response to a lawsuit filed in May by the state of California against companies, which claimed to have misclassified their drivers under the state’s new labor law. Monday’s lawsuit and injunction are the biggest challenges for the ridesharing companies’ business model to date.

San Francisco Superior Court Judge Ethan Schulman delayed execution of his order for 10 days to give the companies a chance to appeal.

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