June 13, 2026 12:10 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Mamata's nightmare deepens! Saayoni Ghosh, Dev, Rachana Banerjee among 19 rebel MPs seeking TMC split | Trump claims US 'ended war with Iran', Tehran yet to confirm a deal | Heartbreak for Indian sports: Manu Bhaker's mentor Jaspal Rana passes away at 49 | Three Indian seafarers, missing after US strike on tanker near Oman, confirmed dead | 'Choose your side': TMC MP Kalyan Banerjee's ultimatum to Mamata in open revolt against Abhishek | Fresh trouble for Abhishek Banerjee! Calcutta HC orders TMC MP to appear before CID in forgery case by 6 pm today | 'No resignation, no retreat': Cockroach Janta Party takes paper leak protest nationwide | TCS goes all-in on AI! Partners with Anthropic, gives Claude access to 50,000 employees | Viral video outrage! Ola driver brutally assaults 70-year-old man over spitting row; arrested after Shinde's personal intervention | Mamata under pressure! Third Rajya Sabha MP Prakash Chik Baraik quits, hints at BJP move

Uber, Postmates sue California over labour law, claiming it as "unconstitutional"

| @indiablooms | Dec 31, 2019, at 10:55 pm

San Francisco/Xinhua: US gig economy companies Uber Technologies, Inc and Postmates Inc on Monday brought a lawsuit against California, claiming a state labour law set to be enforced soon as "unconstitutional."

San Francisco-based ride-hailing giant Uber and delivery startup Postmates filed the lawsuit in the US District Court for Central District of California's Western Division in Los Angeles to defend what they called their constitutional rights.

They argued that the state's controversial labour law, known as California Assembly Bill 5 (AB5), which was passed recently, violated the 14th Amendment to the United States Constitution and other national and state laws.

The two companies, supported by two workers who worked for them as an Uber driver and a courier, respectively, alleged that the AB5, which will take effect on Jan 1 next year, restricted their flexibility to classify their workers as independent contractors.

The AB5 was signed into law by California Governor Gavin Newsom in September, which required gig economy companies such as Uber, Lyft and DoorDash to treat their drivers and workers working for app-based on-demand services as employees rather than independent contractors who usually have no equal work benefits granted to full-time employees.

"AB5 is an irrational and unconstitutional statute designed to target and stifle workers and companies in the on-demand economy," said Uber and Postmates in a court file.

They said the law "irreparably harms network companies and app-based independent service providers by denying their constitutional rights."

Uber and Postmates were supported by Lydia Olson and Miguel Perez, who were named as co-plaintiffs in the lawsuit.

Other gig economy companies, including Lyft and DoorDash, have pledged 110 million U.S. dollars to rally support for Uber and Postmates to be exempted from the AB5 on the November 2020 ballot.


 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.