Uber and Postmates sue to block California’s new gig worker law

According to a lawsuit, the law violates federal and state guarantees of equal protection and due process

Rideshare company Uber and on-demand order delivery service Postmates sued Monday to block a new California law that could fundamentally alter how tech giants engage with workers.

The law, set to take effect on Wednesday, changes the way businesses classify employees and dramatically expands protections for gig workers. It creates the nation’s strictest test by which workers must be considered employees and it could start a precedent for other states.

Related: Dancers, writers, caddies: the gig workers who could benefit from California’s historic bill

The gig economy is based on temporary or freelance jobs. Often these are offered by app-based services like Uber or Deliveroo, where instead of a regular wage, workers get paid for the ‘gigs’ they do. If they aren’t out working, they aren’t getting paid.

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Source: Guardian GiG Economy

Uber and Postmates sue to block California’s new gig worker law

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