Uber, Lyft Win Delay on Converting Drivers to Employees

  • Ride-hail giants back off threat to stop service in California
  • State attorney general opposed pausing judge’s order
A Lyft driver navigates to her passenger in San Francisco.Photographer: Mike Coppola/Getty Images
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Hours before Lyft Inc. and Uber Technologies Inc. were planning to suspend services in their home state of California, a state court gave them a reprieve.

On Thursday, a state appeals court ruled that the companies can keep operating as normal while challenging a judge’s order to comply with a state labor law. The law, in effect since January, mandates that the companies treat their workers in California as employees—a requirement that would upend the companies’ business models.