Uber, Postmates Sue California to Block Gig-Worker Law (3)

Uber Technologies Inc. and Postmates Inc. sued the state of California, alleging that a labor rights law set to go into effect this week is unconstitutional.

The lawsuit filed Monday in Los Angeles federal court is a preemptive strike against the state’s landmark measure designed to ensure gig workers receive employment protections. Uber and Postmates argue the legislative process around California’s Assembly Bill 5 unfairly targeted gig economy companies while favoring other industries and that the law will threaten workers’ flexibility.

The passage of A.B. 5, which takes effect Wednesday, has set in motion a bitter dispute about the rights ...