California Governor Backs Bill That Would Reclassify Lyft, Uber Drivers

Lyft Inc LYFT shares are in the green despite the advancement of Assembly Bill 5 to the Senate floor on Friday by California legislators.

The bill would require ride-hailing companies to classify workers as employees rather than independent contractors.

In June, both Lyft and Uber’s founders argued that classifying the more than 2 million drivers behind the services would be a “devastating burden to their businesses," according to Business Insider.

The founders instead suggested a system of worker-determined benefits, such as paid time off and retirement planning. 

California Gov. Gavin Newsom voiced his support for the aforementioned legislation in a Sacramento Bee column on Labor Day. 

Lyft shares were up 2.05% at the close Wednesday, while Uber shares were higher by 4.2%. 

Related Links: 

Uber, Lyft Near All-Time Lows: A Look At The Stocks

Lyft Short Sellers Are Jumping Ship Following Lockup Expiration

Photo courtesy of Lyft.