Rideshare companies in California have been pushing back against classifying their drivers as employees for the past few years. As Uber and Lyft continue to fight the newly-enacted state law known as AB5, the California Public Utilities Commission ruled that it officially considers rideshare drivers to be employees.
The California Public Utilities Commission is responsible for licensing and regulating some transportation companies—including Uber and Lyft. For now, it’s unclear as to what practical difference this ruling makes because of rideshare companies’ resistance to reclassifying their workforce. It is clear, however, that many government agencies in California believe Uber and Lyft drivers should be classified as employees.