Uber loses gig worker court decision

California Assembly Bill 5, which went into effect on Jan. 1, 2020, added a new standard to the state’s labor law, known as the ABC test, that defines worker relationships, effectively requiring ride-hail and delivery drivers, along with many other gig workers, to be classified as employees. Uber and Postmates, a food delivery provider which Uber now owns, sued the state, claiming that the law unfairly singled out gig-app companies.

In Monday’s ruling, the court concluded that “there were plausible reasons for treating transportation and delivery referral companies differently from other types of referral companies, particularly where the legislature perceived transportation and delivery companies as the most significant perpetrators of the problem it sought to address —worker misclassification.”

AB5 was introduced by Lorena Gonzalez Fletcher…In a June 10 statement, Gonzalez Fletcher said the appeals court decision “is a victory for all workers in the state, but especially the chronically misclassified workers in rideshare and delivery jobs.”

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