Ride-hailing giant Uber and delivery company Postmates have filed a lawsuit against the state of California, claiming a new law that would treat gig-economy freelancers as employees is unconstitutional.
Uber warned earlier this year that it will oppose any change of status for its drivers, which will cost the company extra in social security costs. In the suit, Uber and its co-plaintiffs argue that the law targets independent service providers while exempting direct salespeople, travel agents, construction truck drivers and commercial fishermen.
The gig economy has given drivers “opportunities to earn money when and where they want, with unprecedented independence and flexibility”, the lawsuit said. The new law comes as the ride-hailing company is also facing legal clampdowns on its operations elsewhere.
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