(CNN Business) Uber and Lyft were ordered by a California court on Monday to reclassify their drivers in the state as employees, marking the latest escalation in an ongoing legal battle over a new law impacting much of the on-demand economy. The companies will have 10 days before the order takes effect to allow for an appeal, according to a copy of the ruling from San Francisco Superior Court judge Ethan Schulman. Uber and Lyft currently treat their drivers as independent contractors. Uber UBER Lyft LYFT The mounting legal pressure to reclassify their workers in the state comes at an uncertain time for both companies.andcontinue to grapple with the pandemic, which significantly cut demand for their core ride-hailing businesses. In response to the order, Lyft spokesperson Julie Wood said, "drivers do not want to be employees, full stop."

Source: CNN August 10, 2020 22:18 UTC