Uber and Lyft risk closure in California if they don’t provide employee benefits to drivers

Regulators in California, US, have just ruled that drivers for ride-hailing companies like Uber and Lyft are employees and deserve proper benefits and compensation. At present, the companies classify drivers as contractors meaning they have no legal responsibility to provide health care and other benefits to drivers. In a document published earlier this week, the Public Utilities Commission, the regulators that oversee the likes of Uber and other ride-hail services, said that its drivers are employees and must be compensated accordingly. [Read: How mysterious EV startup Nikola overtook Ford in one night — without selling a single car] According to…

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