Uber, Postmates Lose Challenge to California Gig Economy Law

A federal court tossed Postmates Inc.'s and Uber Technologies Inc.‘s challenge to a California law limiting who they can classify as independent contractors, because the law doesn’t infringe on the companies’ or the drivers’ constitutional rights, the court said.

California Assembly Bill 5 was enacted in 2019. Its stated purpose is to “to ensure workers who are currently exploited by being misclassified as independent contractors instead of recognized as employees have the basic rights and protections they deserve under the law,” including a minimum wage, workers’ compensation, and paid sick and family leave.

A worker generally must be treated ...