U.S. District Judge Dolly Gee has rejected a request by Uber Technologies Inc and courier services provider Postmates Inc to block a new California law that would make it harder for the companies to class workers as independent contractors.
Judge Dolly Gee said that the new bill's purpose of setting a living wage and regulating employment was more important than the potential losses that both firms could face, Reuters first reported.
Gee did not rule on the merits of the case and her decision does not stop the lawsuit, prompting Postmates to confirm they will still be pursuing the case and are considering all legal options. Uber and Postmates issued the lawsuit against the State of California at the end of 2019, arguing that the bill violates the U.S. Constitution and unfairly singles out app-based technology platforms.
The bill focuses predominantly on the gig economy, who currently do not class those working across their platforms as employees, instead classing them as "independent workers" and "partners".
Uber have confirmed they are also considering all available legal options including an appeal against the decision.
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