details

Drivers for Uber and Lyft have always been paid as contract workers, meaning that the rideshare companies do not have to take withholding tax, don’t have to pay for half of their Social Security, and don’t have to offer benefits common to employees.

But a judge on Monday ordered ride-hailing giants Uber and Lyft to treat their California drivers as employees instead of independent contractors, a shift that would guarantee benefits like overtime, sick leave and expense reimbursement for workers who make up much of the freewheeling gig economy.

“Our elected leaders should be focused on creating work, not trying to shut down an entire industry during an economic depression,” Uber spokesperson Davis White said.

Uber has pledged to spend more than a hundred million dollars to support a ballot measure in November that, if approved by voters, would exempt them from the law.

On the other hand, California’s Democratic attorney general said, “Our state and workers shouldn’t have to foot the bill when big businesses try to skip out on their responsibilities. We’re going to keep working to make sure Uber and Lyft play by the rules.”