"Uber and Lyft drivers are now employees under California law, according to a new ruling from regulators," 10 June 2020

California's Public Utilities Commission said in an order Tuesday that Uber and Lyft drivers are "presumed to be employees" under AB-5, the state's new gig work law…[ride-hailing companies] must now comply with existing regulations related to employees.

…Both companies criticized the ruling, saying it could hurt drivers' wages.…"CPUC's presumption is flawed; drivers are correctly classified as independent contractors and overwhelmingly want to remain independent contractors," a Lyft spokesperson [said]…"Uber remains committed to expanded benefits and protections to drivers," a company spokesperson [said]. "If California regulators force rideshare companies to change their business model it could potentially risk our ability to provide reliable and affordable services along with threatening access to this essential work Californians depend on."

…Unlike their full-time counterparts, contractors don't receive benefits like healthcare and paid leave, and Uber and Lyft haven't been required to abide by certain labor regulations, such as minimum wage, or pay payroll taxes for those workers, which feed into programs like unemployment insurance.