A U.S District court judge has rejected Uber and Postmates’ request for a preliminary injunction against a California bill mandating how independent contractors are classified. The request was made as part of lawsuit filed by the companies, along with two ride-sharing drivers, at the end of December. The lawsuit is still in progress.
Assembly Bill 5 (known as AB5) went into effect at the beginning of the year and limits how companies can label workers as independent contractors. While meant to protect contractors, the legislation has been criticized by some freelancers who say it restricts their work opportunities and ability to earn money, as well as tech companies whose business models rely on gig workers.
In a decision issued on Monday, Judge Dolly Gee of the Central Court of California wrote that that the court “cannot second guess the Legislature’s choice to enact a law that seeks to uplift the conditions of the majority of non-exempt low-income workers rather than preserve the status quo for the smaller subset of workers who enjoy independent contractor status,” adding that “the balance of equities and the public interest weight in favor of permitting the State to enforce this legislation.”
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Source: Tech Crunch