The injunction stems from a lawsuit against Uber and Lyft filed by the state of California in May in conjunction with the city attorneys from San Francisco, Los Angeles and San Diego. The suit says the companies "exploited hundreds of thousands of California workers" by classifying drivers as independent contractors and are violating AB5, which took effect in January. As this lawsuit works its way through the courts, Uber, Lyft and other gig economy companies have sponsored a state ballot measure campaign with nearly $200 million to bring the issue to voters. Proposition 22 aims to create an exemption for the companies to AB5 and allow them to continue classifying their workers as independent contractors. The report notes that this latest appeals court ruling "won't have an immediate effect. The court gave the companies at least a 30-day stay without requiring any changes to driver status."
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