Uber and Postmates Sue California to Stop New Freelancer Law
New bill would reclassify independent contractors as employees, increasing costs for employers.
Uber and Postmates started out the week with a bang by suing the State of California in federal court to stop the implementation of the state’s new freelance law, Assembly Bill 5, requiring the reclassification of independent contractors. Under certain circumstances, those contractors must be considered employees. The New York Times reported that Uber and Postmates requested an injunction to prevent the law from going into effect January 1, 2020, as scheduled. Two drivers – Lydia Olson and Miguel Perez – are part of the lawsuit.
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