California court says Uber, Lyft drivers are employees

A California appeals court has upheld an order requiring Uber and Lyft to treat their California drivers as employees instead of independent contractors, less than two weeks before voters will be asked to exempt the ride-hailing giants from the state’s gig economy law.

Thursday's decision won’t have any immediate impact because it doesn’t take effect for at least 30 days, well after the Nov. 3 vote on Proposition 22. Uber and Lyft had appealed an August ruling by a San Francisco judge.

Treating Uber and Lyft drivers as employees would guarantee benefits such as overtime and sick leave.

The companies have not said whether they would appeal Thursday's decision.