Shares tumbled more than 8% on Thursday, and the company announced it would suspend taxi services in California at 11:59 p.m. local time. < p > < p > California has previously issued an order requiring Uber and LYFT to reclassify their online car Hailing drivers into full-time employees. A California judge last week issued an ultimatum to the companies to reclassify their online car Hailing drivers into full-time employees by Friday. Uber and LYFT executives warned last week that they may have to suspend services to comply with the order, which means restructuring their businesses and re hiring workers. “It’s not what we want to do because we know that millions of Californians rely on LYFT for the necessary travel every day,” says LYFT < p > < p > in May, California sued LYFT and Uber for violating a state law that requires the companies to treat their Internet hire drivers as full-time employees rather than as independent contractors. As a full-time employee, online car Hailing drivers will be eligible for sick leave and other benefits.