Uber Challenge to California Contractor Law Revived by US Appeals Court
A U.S. appeals court on Friday revived a lawsuit by Uber Technologies Inc. and subsidiary Postmates Inc. 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.
In a major win for app-based services that heavily rely on contractors, 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.
Uber hailed the 9th Circuit decision in a statement….