SACRAMENTO, Calif. (NBC) – Rideshare company Lyft is suspending its services in California at midnight Thursday.
The move is in response to a court order which forces the company to treat its drivers as employees and not independent contractors.
It’s part of a lawsuit filed by California’s attorney general and three city attorneys claiming Uber and Lyft skirted expenses for workers by falsely classifying them as contractors rather than employees.
Uber has not made a formal announcement yet about suspending service in California, but it is expected to do so.
As of October 2019, Lyft had about 305,000 drivers in California.
In its blog post, Lyft encouraged voters to support Proposition 22 in November, a measure that would exempt app-based ride-hailing services from the state labor law called Assembly Bill 5.
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