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

New EU User Stats Could Reclassify Major Adult Sites Under DSA

Three high-traffic adult sites previously classified as “very large online platforms” under the European Union’s Digital Services Act are reporting user numbers below the threshold for that label, opening the way for possible downgrading of their obligations under that law.

Spicerack Launches 'SpicyFanz' Creator Monetization Platform

Adult product marketplace Spicerack Market has launched its SpicyFanz creator monetization platform.

Singapore Livestreamer Jailed for Performing 'Obscene Acts' in Public

A judge in Singapore on Thursday sentenced a Vietnamese woman to three weeks in jail for livestreaming “obscene acts” from a public area.

FSC Withdraws Support for North Dakota AV Bill

The Free Speech Coalition (FSC) has withdrawn its support for an age verification bill in North Dakota, following changes made by the state legislature.

APClips Launches New Blog

APClips has launched a blog, AmateurPorn.com.

Centrobill Launches 'Max' Payment Suite

Payment processing service Centrobill has launched its new Max Suite toolkit.

AEBN Publishes Popular Searches by Country for December, January

AEBN has released the list of popular searches from its straight and gay theaters by country in December and January.

South Dakota Legislators Debate AV Legal Strategies

The South Dakota state Senate Judiciary Committee on Tuesday heard testimony and debate over two competing age verification bills, in a hearing that focused largely on which piece of legislation could best withstand potential legal challenges.

Mobile OnlyFans Management Platform 'TopCreator' Launches

Mobile OnlyFans management and chat platform TopCreator has launched.

JustFor.fans Marks Its 7th Anniversary With Palm Springs Conference

JustFor.fans is celebrating its seventh anniversary with a four-day conference and party in Palm Springs May 18-21.

Show More