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 © 2024 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

Fleshy to Launch Interactive Cam Site 'Eremote'

Male pleasure brand Fleshy has announced that it will launch an interactive, bidirectional cam site next month called Eremote.

XBIZ LA Show Introduces New 'Crib Crawl' Feature

XBIZ is pleased to announce that the 2025 edition of its flagship conference, the XBIZ Show, will debut a brand-new feature: Crib Crawl, offering attendees the chance to meet and greet representatives from leading brands and organizations in dedicated suites at the host venue.

Pre-Nominations Now Open for 2025 TEAs

The pre-nomination period for the 2025 Trans Erotica Awards (TEAs) is now open.

Byborg Invests $22.35M in PLBY Group

Luxembourg-based Byborg Enterprises SA is investing $22.35 million in Playboy parent company PLBY Group.

Supreme Court to Hear Oral Arguments on Texas AV Law in January

The United States Supreme Court has scheduled oral arguments for Free Speech Coalition's challenge to Texas’ age verification law to take place Wednesday, Jan. 15.

2025 XBIZ Exec Awards Nominees for Online Industry Announced

XBIZ is pleased to announce the nominees for the online industry edition of the 2025 XBIZ Exec Awards, set to be presented as part of the annual XBIZ Honors ceremony on Wednesday, Jan. 15 in conjunction with the XBIZ 2025 conference.

Project 2025 Leader Claims Big Tech Companies 'Deliberately Fuel Pornography Addiction' Among Men

Heritage Foundation president and Project 2025 leader Kevin Roberts published on Wednesday the text of a speech in which he persists with his past claim that “predatory Big Tech corporations” are “deliberately fueling pornography addiction” among young men.

FSC Petitions 10th Circuit for Review of Utah AV Dismissal

Free Speech Coalition (FSC) on Wednesday petitioned the United States Court of Appeals for the 10th Circuit to review a decision handed down earlier this month by a three-judge panel of the same appeals court, which denied FSC the right to challenge Utah’s controversial age verification law by suing state officials.

MyAdultAttorney's Corey D. Silverstein to Hold Post-Election Legal Impact Webinar

Industry attorney Corey D. Silverstein will hold a “Legal Impact” webinar titled “We Have a New U.S. President: Legal and Community Implications” on Nov. 12 at 1 p.m. PST.

Pornhub Shuts Down Access in Oklahoma Over Age Verification

Aylo began geo-blocking Pornhub across Oklahoma on Tuesday, three days in advance of the state’s new age verification law, SB 1959, taking effect.

Show More