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Judge: Uber, Lyft Use 'Circular Reasoning' To Avoid Making Drivers Employees

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In a ruling Monday, a California judge said Uber and Lyft have refused to comply with a California law, known as AB5, passed last year that was supposed to make it harder for companies in the state to hire workers as contractors. (Robyn Beck/AFP via Getty Images)
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A California judge has ordered rideshare companies Uber and Lyft to begin treating their drivers as employees rather than independent contractors.

California Superior Court Judge Ethan Schulman said Lyft and Uber use "circular reasoning" by only treating tech workers, not drivers, as employees:

"Were this reasoning to be accepted, the rapidly expanding majority of industries that rely heavily on technology could with impunity deprive legions of workers of the basic protections afforded to employees by state labor and employment laws."

The judge's order does not take effect for 10 days. Both Uber and Lyft, of course, say they plan to appeal.

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