Uber Falters in First Legal Attack on California Gig Worker Law
- U.S. judge says challenge to A.B. 5 is a ‘steep hill to climb’
- Measure aims to convert independent contractors to employees
Uber Technologies Inc. and Postmates Inc. are unlikely to put a quick stop to a landmark California law they call a monstrous threat to their business models.
A judge signaled Friday that she’s inclined to reject a request to temporarily shield the companies from Assembly Bill 5, which is aimed at converting gig-economy workers from independent contractors to employees with benefits.
Uber and Postmates sought a preliminary injunction, an order insulating their drivers from A.B. 5’s protections, while they challenge the measure as unfair and unconstitutional. Reclassifying drivers as employees will add 20% to 40% in labor costs, the companies said in a court filing that described A.B. 5 as an “irrational Frankenstein-like statute.”
U.S. District Judge Dolly M. Gee said during a hearing in Los Angeles that it was “a steep hill to climb” for Uber and Postmates to argue that the statute irrationally targets the app-based companies on the grounds that many workers in other industries were exempt from it.