California Regulators Say Uber, Lyft Drivers Are Employees (1)

The California agency that regulates buses, limousines, and app-based transportation companies will consider Uber Technologies Inc. and Lyft. Inc. drivers as employees and not independent contractors, as long as a court decision or voter-backed initiative doesn’t change the law.

The California Public Utilities Commission (CPUC) published an order Tuesday that determines that the drivers are employees under A.B. 5, the new California law that makes it harder for employers to classify their workers as independent contractors.

Classifying drivers as contractors relieves the companies of certain responsibilities as employers, such as paying unemployment insurance and worker’s compensation. Uber, Lyft, and ...