A California appeals court yesterday affirmed a ruling that rideshare companies like Uber and Lyft must reclassify their drivers as employees instead of independent contractors. CEI expert Iain Murray warns of the hardships this requirement will impose on workers, employers, and consumers.

“Thousands of Californians are going to lose work at the worst possible time as a result of this ruling. The state’s efforts to destroy the gig economy will result in more hardship, fewer deliveries, and more expensive rides at a time when the reverse is needed. The law is perverse and needs to be repealed.”

Related report: California Ride Share Contracting Legislation Is a Solution in Search of a Problem