Uber Loses Early Challenge To California Gig-Worker Law

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Posted on February 11, 2020
Will Uber succeed? It doesn't look good...(Photo by Pexels user Elina Sazonova)

Will Uber succeed? It doesn't look good...(Photo by Pexels user Elina Sazonova)

Uber Technologies Inc. failed to persuade a judge to shield its drivers from California’s gig-worker protection law while the company challenges the landmark measure in court. A federal judge in Los Angles rejected a request by Uber and Postmates Inc. to temporarily block enforcement of Assembly Bill 5, which aims to convert gig-economy workers from independent contractors to employees with benefits. Uber and Postmates didn’t ask the judge to shield other companies from the law.

Yahoo Finance article here

Related Topics: California operators, employee vs independent contractor, independent contractor issues, labor laws, lawsuits, Legal Issues, legislation, regulatory enforcement, state regulations, TNCs, Uber

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Comments ( 2 )
  • Chuck Cotton

     | about 4 months ago

    Since many drivers operate both Uber and Lyft in the same outing, the labor department has updated the joint employer status rule which takes place March 16. Obviously, Uber and Lyft have to be in compliance with AB5 and the four factors under the Fair Labor Standards Act will constitute " joint employers" with direct control over the employees. It appears if Uber and Lyft refuse to comply, then the courts will be called upon to determine whether a joint employment relationship exists in any particular circumstance. The new rule will benefit the drivers which are clearly employees by eliminating confusion and uncertainty. Such rules and workplace laws including wage and hour, discrimination, collective action, and other laws will quickly prevail in all states.

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