Uber rival Lyft hit the brakes on plans to stop its rideshare service in California Thursday, after an appeals court granted the companies a temporary reprieve from having to reclassify drivers as employees. A judge had given Uber and Lyft until Friday to comply with a labor law on the matter. "The California court has granted our request for a further stay, so our rideshare operations can continue uninterrupted, for now," Lyft said in a blog post. Shortly before the appeals court decision, Lyft said it would suspend its rideshare service in California rather than classify drivers as employees entitled to benefits. Uber had said it also expected to suspend its ride service in California. "This temporarily removes a major black cloud for ridesharing names with Lyft on the cusp of suspending its service throughout California," Wedbush analyst Dan Ives said in a note to investors about the ruling. The court said it wanted sworn statements from Uber and Lyft bosses that they have plans to comply if the judge's original order is eventually upheld and if a proposition aimed at overriding the new labor law loses on a November ballot. A ballot measure sponsored by the companies would keep drivers classified as contractors but provide benefits such as health care. "We are glad that the Court of Appeals recognized the important questions raised in this case," Uber said. "And that access to these critical services won't be cut off while we continue to advocate for drivers' ability to work with the freedom they want." gc/bfm