California's Public Utilities Commission made an order Tuesday regarding Uber and Lyft drivers.<br />All drivers are "presumed to be employees" under AB-5, the state's new gig work law.<br />The agency said they must now comply with existing regulations related to employees.<br />The ruling is a significant defeat for Uber and Lyft, which had argued publicly and in lawsuits.<br />Their argument was that their drivers were properly classified as independent contractors.<br />Uber, Lyft, and other similar services have come under fire for their treatment of contractors.