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

Anissa Kate, Jordan Starr Top AEBN for Q2 of 2025

AEBN has published its top-selling stars for the second quarter of 2025, with Anissa Kate landing atop the leaderboard for straight theaters and Jordan Starr heading up the gay rankings.

AEBN Reveals Eva Maxim as Top Trans Star for Q2 of 2025

AEBN has published its top trans stars list for the second quarter of 2025, with Eva Maxim landing atop the leaderboard.

France Reinstates Age Verification Rule for EU Sites

France’s highest court, the Council of State, on Tuesday reinstated age verification rules for EU-based sites under the country’s Security and Regulation of the Digital Space (SREN) law, ruling in favor of the French government and against Hammy Media.

Whisper Fans Joins Pineapple Support as Supporter-Level Sponsor

Whisper Fans has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Utherverse Launches 'Red Light Center' Virtual World

Virtual reality and metaverse technology company Utherverse has launched its new virtual world, RedLightCenter.io.

European Commission Approves AV Guidelines, Unveils Prototype App

The European Commission on Monday released its final, approved guidelines for protecting minors online under the EU’s Digital Services Act (DSA) and made public a “white label” age verification app intended to help sites and platforms comply with age verification rules under the DSA.

New Membership Site 'Sluts Corner' Launches

R18 Entertainment has launched a new membership site, SlutsCorner.com.

Roxie Rae Relaunches Site Through XSiteAbility

Roxie Rae has relaunched her site through XSiteAbility.

Show More