Judge denies Uber's, Postmates' request to halt California gig worker law

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A U.S. judge on Monday rejected a request by Uber Technologies Inc and courier services provider Postmates Inc to block a California labor law ...

A U.S. judge on Monday rejected a request by Uber Technologies Inc and courier services provider Postmates Inc to block a California labor law from taking effect, saying the bill's public benefits outweighed the companies' concerns.

U.S. District Judge Dolly Gee in Los Angeles said that while the companies had proven they could suffer a degree of irreparable harm as a result of the law, the potential risks to them were less important than the public interest in setting a living wage and regulating employment.The 24-page decision is a blow to the employers of the so-called gig economy which had hoped to stop a bill that will make it harder for them to classify their workers as independent contractors rather than employees.

Under the law, which took effect on Jan. 1, companies in violation face potential criminal penalties, but to date no enforcement action has taken place. Investors are watching the California dispute closely, as companies subject to the law would be required to provide higher pay and other benefits such as medical insurance - likely upending the gig-economy business model.

Source: Law Daily Report (lawdailyreport.net)

 

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