California gig worker law AB 5 withstands challenge from Uber

Lorena Gonzalez, chief officer of the California Labor Federation and the former state lawmaker who authored AB 5, said Monday, June 10 that a ruling by the 9th U.S. Circuit Court of Appeals was “a victory for all workers in the state, but especially the chronically misclassified workers in rideshare and delivery jobs.” Uber lost its long-running attempt to overturn a California law that would require it to provide employment rights to its drivers and delivery workers.

More than 1.4 million workers in California do app-based driving and delivery work for big gig companies such as Uber, Lyft, DoorDash and Instacart, according to the industry’s latest estimates. Prop. 22 exempted Uber and other companies such as Lyft, DoorDash and Instacart from AB 5, allowing them to continue to treat their workers as independent contractors while giving them some new benefits they did not have before, such as guaranteed minimum earnings.out of the about $200 million the gig industry put into the campaign. It contends AB 5 threatens the “flexible work opportunities” that many Californians want.

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