Judge Rules Against Uber, Lyft in California Effort to Convert Drivers to Employees

A California judge late Monday granted the state of California a preliminary injunction against Uber Technologies (NYSE: UBER) and Lyft (NASDAQ: LYFT), telling the rideshare companies to comply with a state law requiring them to classify drivers as employees. The state, along with a number of California's largest cities, sued earlier this year to enforce a new California labor law that prohibits so-called "gig economy" companies from relying on contractors that aren't entitled to the benefits full-time employees normally enjoy.