By Preetika Rana 

Uber Technologies Inc. and Lyft Inc. are misclassifying their workers as independent contractors and need to treat them as employees according to state labor law, a California appeals court said Thursday, affirming a lower court ruling from August that threatened to upend the companies' business models.

Uber and Lyft would need to comply with the reclassification within 30 days of a formal ruling, which could take several weeks.

The companies, along with DoorDash Inc., Postmates Inc. and Instacart Inc., have raised more than $189 million for a ballot initiative on Nov. 3, asking that voters exempt them from such a reclassification. That result would supersede any court rulings.

(More to come.)

Write to Preetika Rana at preetika.rana@wsj.com

 

(END) Dow Jones Newswires

October 22, 2020 21:47 ET (01:47 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
Uber Technologies (NYSE:UBER)
Historical Stock Chart
From Nov 2020 to Dec 2020 Click Here for more Uber Technologies Charts.
Uber Technologies (NYSE:UBER)
Historical Stock Chart
From Dec 2019 to Dec 2020 Click Here for more Uber Technologies Charts.