AB5 Update: Judge Declines to Rule Uber Drivers Are Employees

AB5 Update: Judge Declines to Rule Uber Drivers Are Employees

LOS ANGELES — The newest data point in XBIZ’s ongoing coverage of California’s AB5 initiative comes from U.S. District Judge Edward Chen, who has declined to compel Uber to reclassify its drivers in California as employees.

Courthouse News Service has reported that the move seems to come down to a discrepancy over whether a sought-after injunction should be treated as being public or private — and is likely to not be the last word on Uber’s driver classification.

It is a saga studied by the industry as it seeks to steer clear of liability while continuing to make use of independent contractors, ranging from performers to programmers, cammers to consultants and everything in between who live in California or provide services to California businesses.

Uber plans to continue classifying drivers as contractors, claiming they are not employees under California’s “ABC Test” and is fighting to overturn the law. If it cannot win, Uber may be liable for drivers' job expenses, including gas, insurance, maintenance and phone plans.

On the flip side, the law’s supporters claim that many employees are mislabeled as contractors to save their employers money on taxes and benefits while depriving these workers of their rights under state law, such as a minimum wage, plus overtime and sick pay, workers’ compensation insurance and more.

Labor rights attorney Shannon Liss-Riordan believes that worker misclassification is “a significant factor in the erosion of the middle class and the rise in income inequality.”

“While the court declined to grant our request for injunctive relief on a preliminary basis, the court left open the possibility that we may obtain injunctive relief on a permanent basis later in the case,” Liss-Riordan told Courthouse News Service. “So, we look forward to proceeding with the case and at last requiring Uber to comply with California law and stop depriving its drivers of their basic rights under the California Labor Code.”

Stay tuned to XBIZ for the newest updates on AB5 and what it means for the future of your business.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Pineapple Support Taps Reagan Foxx as Brand Ambassador

Pineapple Support has named Reagan Foxx as its newest brand ambassador.

Randy Denmark Launches New Paysite

Producer and content creator Randy Denmark has launched his new membership site, RandyDenmark.com, through MyMember.site.

Alabama Senate Committee Approves Filtering, App-Based AV Bills

The Alabama state Senate’s Children and Youth Health Committee on Thursday approved two bills intended to prevent minors from accessing adult content online, one aimed at device manufacturers and the other aimed at app store providers.

Sen. Mike Lee Renews Push for Federal AV Legislation

Republican Sen. Mike Lee of Utah on Wednesday reintroduced a federal age verification bill that has twice previously failed to make it through Congress.

South Dakota Governor Signs AV Law With Criminal Charges

South Dakota Governor Larry Rhoden has signed into law a bill imposing criminal charges on sites that fail to perform age verification of users when providing access to adult content.

UK Pornography Review Recommends Banning 'Extreme' Content

The “pornography review” initiated under the conservative government of former U.K. Prime Minister Rishi Sunak is soon expected to present its recommendations, which according to a BBC report will include banning any adult content deemed “degrading, violent and misogynistic.”

Malaysian Government Urges Tech Companies to Continue Porn Crackdown

Communications Minister Fahmi Fadzil has asked all social media and online messaging platforms with at least 8 million users to register as application service providers beginning this year, in an effort to monitor and prevent pornography on such sites.

SceneLocker Extends Closed Beta Test for Creators

Content creator cloud storage company SceneLocker has extended its closed beta test.

Ms. Magazine Exposes Anti-LGBTQ+ Effects of AV Laws

Ms. magazine on Tuesday published an article examining how state age verification laws, promoted as a way to protect children online, are being used to censor LGBTQ+ and abortion-related content.

Zuzana Designs Marks 20-Year Anniversary

Web design and marketing firm Zuzana Designs is celebrating its 20th anniversary.

Show More