Uber and Postmates filed a lawsuit on Monday (Dec. 30) seeking an injunction to prevent Assembly Bill 5, the state’s controversial freelancer law, from taking effect against them on Jan. 1.
The law would require the ride-sharing app and the delivery service to classify their California-based drivers as employees rather than contractors — which, according to the New York Times, could add as much as 20 to 30 percent to their labor costs. As employees, drivers would be protected by minimum wage and overtime regulations and eligible for unemployment insurance and workers’ compensation.
Uber said in a statement that it is seeking the injunction “on the basis of lack of equal protection and due process under both federal and state law,” while Postmates said, “This lawsuit is an effort to preserve on-demand work opportunities.”
“Uber is in court bizarrely trying to say A.B. 5 is unconstitutional,” the bill’s author, Assemblywoman Lorena Gonzalez, said. “The one clear thing we know about Uber is they will do anything to try to exempt themselves from state regulations that make us all safer and their driver employees self-sufficient.”
Uber and Postmates aren’t the only ones suing to stop the law from taking effect, however. Earlier this month, the American Society of Journalists and Authors filed suit on behalf of California freelance journalists, arguing its rule that freelancers may not contribute more than 35 submissions a year to a publication is harmful to their livelihood.
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