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Uber, Postmates Sue California to Block Gig-Worker Law

  • Companies call labor rights measure unfair, unconstitutional
  • A.B. 5 will qualify many contractors for employment benefits
Inside Postmates Offices Ahead Of Possible IPO
Photographer: David Paul Morris/Bloomberg
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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.