A California judge ordered Uber and Lyft to reclassify their drivers as employees instead of independent contractors, KPBS reports.
Monday's ruling requires the ride-hailing companies to reclassify thousands of drivers and afford them benefits and protections, such as sick leave, health insurance, and workers compensation.
Superior Court Judge Ethan Schulman said the companies have violated California labor law by labeling its drivers as contractor workers. California's Assembly Bill 5, passed in January, made it more difficult for companies to label workers as independent contractors.
Both Uber and Lyft have said they will appeal the decision.