A Lyft driver on California Street in San Francisco on April 3, 2020 (Photo: Jason Doiy/ALM) A Lyft driver on California Street in San Francisco on April 3, 2020. (Photo: Jason Doiy/ALM)

The First District Court of Appeal late Thursday affirmed a preliminary injunction forcing Uber Technologies Inc. and Lyft Inc. to classify their drivers as employees, not independent contractors.

The unanimous three-justice panel concluded that San Francisco Superior Court Judge Ethan Schulman committed no legal error Aug. 10 when he found that the two ride-hailing companies should no longer "evade" California worker classification laws "merely because their businesses are so large that they affect the lives of many thousands of people."

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Alaina Lancaster

Alaina Lancaster, based in San Francisco, covers disruptive trends and technologies shaping the future of law. She authors the weekly legal futurist newsletter What's Next. Contact her at [email protected]. On Twitter: @a_lancaster3