UBER - Uber Drivers: Employees Or Contractors? California Court Deals Blow To Gig Economy | Benzinga
A U.S. appeals court on Monday rejected a bid by Uber (NYSE:UBER) and its subsidiary Postmates to revive a challenge to a California law that could force the companies to treat drivers as employees rather than independent contractors.
What Happened: The 11-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco upheld a lower court’s decision, Reuters reported on Tuesday. The court ruled that Uber did not demonstrate that the 2020 state law, AB5, unfairly targeted app-based transportation companies while exempting other industries.
Uber stated on Monday that the ruling would not alter the status of its drivers, who remain contractors under Proposition 22, a 2020 ballot initiative. The fate of Prop 22 is currently being considered in a ...