Uber and Lyft must classify drivers as employees, judge rules, in blow to gig economy

Preliminary injunction in California follows state's lawsuit against companies over new labor law

A California judge has issued a preliminary injunction that would block Uber and Lyft from classifying their drivers as independent contractors rather than employees.

The move on Monday came in response to a May lawsuit filed by the state of California against the companies, which alleged they are misclassifying their drivers under the state's new labor law.