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Uber Prepares Challenge To New California Contractor Law

By  |  March 19, 2023

A US appeals court on Friday revived a lawsuit by Uber challenging a California law that would require them to provide more proof that workers are independent contractors, a classification that helps the companies save millions.

The San Francisco-based 9th U.S. Circuit Court of Appeals said the state must face claims that the law known as AB5 is unconstitutional because it improperly singles out app-based transportation businesses while exempting many other industries.

Read more: California Court Rules Uber & Lyft Drivers Are Contractors

“This is yet another signal that efforts to take away drivers’ independence and flexibility will ultimately fail,” the company said.

The office of California Attorney General Rob Bonta, a Democrat, said in a statement that it was reviewing the decision and assessing its next steps.

“We will continue to defend laws that are designed to protect workers and ensure fair labor and business practices,” Bonta’s office said.