A U.S. judge on Monday rejected a request by Uber Technologies Inc and courier s...
- A U.S. judge on Monday rejected a request by Uber Technologies Inc and courier services provider Postmates Inc to block a California labor law from taking effect, saying the bill’s public benefits outweighed the companies’ concerns.
The 24-page decision is a blow to the employers of the so-called gig economy which had hoped to stop a bill that will make it harder for them to classify their workers as independent contractors rather than employees.Postmates said in a statement that Gee’s decision was merely procedural and that the company looked forward to pursuing the case on its merits. It added it was considering all legal options, including an appeal.
Under the law, which took effect on Jan. 1, companies in violation face potential criminal penalties, but to date no enforcement action has taken place.
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