The ruling is a blow to Uber and Lyft, which have argued they are not subject to state labor law. But the court's order could still be upended by a ballot measure backed by the ride-hailing companies.
An appeals court has given the ride-hailing companies more time to fight a judge's order that they reclassify their drivers as employees to comply with state law.
Uber and Lyft have been fighting California over whether drivers are employees, entitled to benefits, or independent contractors. A state judge orders them to consider all those drivers employees.