UBER CEO Dara Khosrowshahi said the company will likely shut down its services in California for several months if it must pay people as employees instead of contractors.

"If the court doesn't reconsider, then in California, it's hard to believe we'll be able to switch our model to full-time employment quickly," Khosrowshahi said during an interview on MSNBC.

Khosrowshahi's comments come days after a San Francisco judge ruled the company must treat its independent contractor drivers as full-time employees.

San Francisco Superior Court Judge Ethan P. Schulman ruled Monday that ride-hailing apps such as Uber and Lyft must treat their California drivers like employees instead of contractors, which would allow drivers to access benefits including overtime, sick leave, and expense reimbursement.

However, both Uber and Lyft have appealed to a higher court following Schulman's verdict, meaning the ruling is put on hold as the trial continues.

A hearing is scheduled for August 13 in San Francisco Superior Court.

Monday's ruling harkens back to a suit brought against the two companies in May by Attorney General Xavier Becerra and the city attorneys from San Francisco, Los Angeles, and San Diego.

That suit alleged both companies violated California's AB5 gig worker law.

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Should Uber lose the appeal, Khosrowshahi said the app will shutdown until at least November as the company begins to revamp its model.

November is also when California voters will vote on Proposition 22, which will decide on keeping "app-based transportation (rideshare) and delivery drivers as independent contractors" while adopting higher wage and labor benefits.

Still, Becerra has hope for the company and Prop 22. “Any business model that relies on shortchanging workers in order to make it probably shouldn’t be anywhere, whether California or otherwise."

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