Uber loses challenge to California gig work law in US appeals court

A US appeals court on Monday rejected a bid by Uber, opening a new tab and subsidiary Postmates to revive a challenge to a California law that could force the companies to treat drivers as employees rather than independent contractors who are typically less expensive.

Uber in a statement on Monday said the ruling would not change the status of its relationships with its drivers, who are considered to be contractors under a 2020 ballot initiative known as Proposition 22.The fate of Prop 22 is being weighed in a separate case at the state’s top court, which last month heard arguments from a labor union and four drivers contending the ballot measure was unconstitutional.

Employees are entitled to the minimum wage, overtime pay, reimbursements for expenses and other protections that are not extended to independent contractors. Uber in a statement on Monday said the ruling would not change the status of its relationships with its drivers, who are considered to be contractors under a 2020 ballot initiative known as Proposition 22.The clash over the scope of AB5 comes amid a broader national debate over state and federal laws and other regulations that could require more companies to deem their workers as employees.

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