The U.S. Supreme Court has declined to hear an appeal by Uber and Lyft to avoid lawsuits in California regarding the misclassification of drivers. This decision allows California to pursue claims that the companies owe back wages and benefits to drivers who were allegedly misclassified as contractors. The lawsuits argue that drivers should be classified as employees, which would entitle them to various labor protections and benefits. This ruling could have significant financial implications for both Uber and Lyft, as it opens the door for further legal challenges and potential liabilities.