Federal Appeals Court Upholds California's AB 5 Gig Worker Law

The ruling requires companies like Uber to classify drivers as employees, with significant implications for the gig economy.

The 9th Circuit Court of Appeals confirmed that AB 5 is constitutional, rejecting Uber's challenge.
AB 5 mandates that gig workers be treated as employees, not independent contractors, ensuring they receive employment benefits.
Uber argued that AB 5 unfairly targets app-based companies while exempting other industries, but the court found legitimate reasons for this distinction.
The decision may influence similar legal battles in other states and sets a precedent for future gig economy regulations.
The California Supreme Court is separately considering the constitutionality of Proposition 22, which exempts app-based companies from AB 5.