Drivers in California sued Uber and Lyft, claiming the companies owe them $630 million in back wages. Mario Tama/Getty Images A California appeals court on Thursday unanimously upheld a lower court ruling requiring Uber and Lyft to reclassify their drivers as employees under the state's gig work law, AB-5. The ruling doesn't kick in immediately, however, leaving in place an emergency stay issued in August until likely after the election. Uber and Lyft have sought to avoid being forced to comply with the ruling by trying to convince voters to exempt them from AB-5 via a ballot measure into which the companies have poured nearly $200 million. Visit Business Insider's homepage for more stories. A California appeals court handed Uber and Lyft a major legal defeat on Thursday, ruling that a lower court was correct in granting an injunction forcing the companies to reclassify their drivers as employees under the state's gig worker law AB-5.In their ruling, judges from California's first district Court of Appeal said they were "unpersuaded" by arguments from Uber and Lyft that the lower court erred in issuing the injunction.The judges also invoked the late Supreme Court Justice Ruth Bader Ginsburg in their ruling, noting that her "cogent explanation" of the legal test for reviewing a trial court's decision to issue an injunction played a key role in its analysis of the case."This decision makes it abundantly clear that Uber and Lyft have been breaking the law for years," San Francisco city attorney Dennis Herrera said in a statement Thursday evening."This is a victory for the people of California and for every driver who has been denied fair wages, paid sick days, and other benefits by these companies.

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