California passed Assembly Bill 5 late last year in an attempt to reclassify many gaming jobs as employees, and so far Lyft and Uber have not done so. The state is suing them, and on Monday afternoon, Judge Ethan Schulman of the San Francisco Superior Court ruled in favor of a preliminary injunction that would prevent companies from classifying drivers as independent contractors.
Reuters reports that in the 34-page decision, Schulman said there is an “overwhelming likelihood”
; that the state will prove that the two companies have illegally classified workers, and that they fail the law’s three-step test to determine whether workers are employees. He postponed the execution of the sentence for ten days to appeal, which both companies plan to pursue, while San Francisco Chronicle
reports Uber also said it will push for a longer stay. In a statement, Lyft said, “We will immediately appeal this ruling and continue to fight for their independence. Ultimately, we believe that this issue will be resolved by voters in California, and that they will go along with drivers. “