Lyft to Suspend California Operations

Lyft (NASDAQ: LYFT) said Thursday that it will suspend its ride-hailing operations in California at midnight tonight in response to a court ruling that would force the company to classify its drivers in the state as employees.

Lyft, Uber Technologies (NYSE: UBER), and other tech companies have been battling against a new California labor law that prohibits companies from relying on contractors who are not entitled to the benefits that full-time employees receive. A California judge last week ruled the companies are violating the law, which says workers can only be considered contractors if they perform duties outside of the usual course of a company's business.

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Source Fool.com