Uber and Lyft get a temporary reprieve from California shut-down order

Uber and Lyft can continue to operate in California thanks to a last-minute ruling that grants the companies a temporary stay while they appeal a previous court order to re-classify their drivers as employees.

The stay comes less than 12 hours before Lyft said it would shut down its California operations as a result of the injunction. Uber had also warned it would be forced to halt its ride-hailing business in California. With the stay, the companies will be able to continue operations while they await the results of the appeals process.

The impending shutdowns were the latest bout of legal drama for the companies, which were sued by their home state earlier this year for misclassifying drivers despite a California law that required them to treat drivers as employees. Since then, both Uber and Lyft have been locked in a legal battle in California, as they await the November election, which will put the issue to voters.

Update 5:11pm ET: In a statement, Lyft spokesperson Julie Wood said the company would “continue fighting.”

“While we won’t have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers,” Wood said. “That’s the solution on the ballot in November, and it’s the solution drivers want because it preserves their ability to earn and to use the platform as they do now — whenever they want — while also getting historic new benefits. Without it, 80-90% of Californians who earn on app-based platforms will lose that opportunity.”