California Uber Drivers Succeed in Their Fight to Be Recognized as Employees Under the Law

A U.S. appeals court stopped Uber's attempt to challenge a law that wants to make gig workers such as Uber drivers full employees. The law, California AB5, ensures these workers receive better pay and protection. 

A panel of judges from the 9th Circuit of Appeals ruled that AB5 does not single out transportation gig companies for “uniquely disfavored treatment.” 

“Drawing the line between ‘employee’ and ‘independent contractor’ is a difficult task, with significant consequences for workers and businesses, that has long vexed courts and lawmakers across the country. California is no exception,” Circuit Judge Jacqueline Nguyen wrote in the majority opinion.  

The controversy over AB5 is part of the debate about whether more companies should have to treat their workers as employees, instead of independent contractors, under state and federal laws.

“In an effort to address what it perceived as a systemic problem of misclassification—that is, businesses improperly characterizing their workers as independent contractors to avoid fiscal responsibilities owed to employees—the California legislature enacted Assembly Bill 5,” Circuit Judge Nguyen wrote.