Regulators in California, US, have just ruled that drivers for ride-hailing companies like Uber and Lyft are employees and deserve proper benefits and compensation.
At present, the companies classify drivers as contractors meaning they have no legal responsibility to provide health care and other benefits to drivers.
If they don’t, Uber, Lyft, and other similar companies could face fines, or face being shut down.
While Uber and Lyft are the obvious focus of this legislation, the regulator’s document refers to them more generally as Transportation Network Companies (TNCs).
The document doesn’t cover how these regulations might extend to cover other gig workers, like Uber Eats delivery drivers.

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