Two major corporations are suing the State of California alleging that a labor rights law that went into effect Jan. 1, 2020 is unconstitutional. Filed in Los Angeles federal court on Dec. 30, 2019, the lawsuit by Uber Technologies and Postmates are striking preemptively against Assembly Bill 5, which was intended to extend greater employment protections to those who work for companies like these and others within the so-called “gig economy.” But the plaintiffs say companies that rely on so-called “gig workers” were unfairly targeted while those in other industries were given more favorable treatment under the law with regard to how they classify workers. In turn, this has threatened the workers’ ability to be flexible.
As our Los Angeles employee misclassification attorneys can explain, AB5 has been the subject of intense and bitter dispute, with drivers, food couriers and other workers caught up in the middle. These workers derive their income by accepting “jobs” through these companies’ smartphone and computer apps. Plaintiffs allege the law arbitrarily exempted various types of workers, including commercial fisherman, grant writers, travel agents, direct salespeople and construction truck drivers.
Written as a means of codifying the California Supreme Court’s 2018 ruling in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (i.e., “the Dynamex ruling). Continue Reading ›