AB5 Update: Judge Declines to Rule Uber Drivers Are Employees

AB5 Update: Judge Declines to Rule Uber Drivers Are Employees

LOS ANGELES — The newest data point in XBIZ’s ongoing coverage of California’s AB5 initiative comes from U.S. District Judge Edward Chen, who has declined to compel Uber to reclassify its drivers in California as employees.

Courthouse News Service has reported that the move seems to come down to a discrepancy over whether a sought-after injunction should be treated as being public or private — and is likely to not be the last word on Uber’s driver classification.

It is a saga studied by the industry as it seeks to steer clear of liability while continuing to make use of independent contractors, ranging from performers to programmers, cammers to consultants and everything in between who live in California or provide services to California businesses.

Uber plans to continue classifying drivers as contractors, claiming they are not employees under California’s “ABC Test” and is fighting to overturn the law. If it cannot win, Uber may be liable for drivers' job expenses, including gas, insurance, maintenance and phone plans.

On the flip side, the law’s supporters claim that many employees are mislabeled as contractors to save their employers money on taxes and benefits while depriving these workers of their rights under state law, such as a minimum wage, plus overtime and sick pay, workers’ compensation insurance and more.

Labor rights attorney Shannon Liss-Riordan believes that worker misclassification is “a significant factor in the erosion of the middle class and the rise in income inequality.”

“While the court declined to grant our request for injunctive relief on a preliminary basis, the court left open the possibility that we may obtain injunctive relief on a permanent basis later in the case,” Liss-Riordan told Courthouse News Service. “So, we look forward to proceeding with the case and at last requiring Uber to comply with California law and stop depriving its drivers of their basic rights under the California Labor Code.”

Stay tuned to XBIZ for the newest updates on AB5 and what it means for the future of your business.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

2024 XBIZ Europa Awards Categories Announced, Pre-Noms Now Open

XBIZ is pleased to announce the categories for the 2024 XBIZ Europa Awards, the capstone event of XBIZ Amsterdam.

Canadian Officials, Experts Lambast Anti-Porn Senator's Age Verification Bill

Canada’s privacy commissioner warned a parliamentary committee on Tuesday that the expansive age verification bill promoted by vocal anti-porn and anti-sex-work Senator Julie Miville-Dechênel has broad censorship implications and could end up applying to mainstream services such as Netflix.

FSC Director: New Tennessee Age Verification Law is 'Attack on 1st Amendment'

Free Speech Coalition (FSC) Executive Director Alison Boden called Tennessee’s new age verification bill, signed into law by Republican Governor Bill Lee on Tuesday, “an attack not only on the adult industry but on the First Amendment rights of millions of people who engage with adult content online.”

South Carolina Governor Links Age Verification Law, Trans Youth Care Ban

South Carolina’s Republican Governor Henry McMaster held a ceremony on Wednesday combining the signings of the state’s new age verification law for adult content and a controversial ban on gender affirming care for trans youth.

BBW VR Studio BEVR.io Rebrands As 'Blush Erotica VR'

Blush Erotica’s VR studio for BBW performers, BEVR.io, has officially rebranded as BlushEroticaVR.com.

XBIZ Amsterdam to Take Over Park Centraal Hotel Sept 3-5

XBIZ is pleased to announce the return of Europe’s biggest gathering of creators, studio stars and digital media pros: XBIZ Amsterdam, set to take place Sept. 3-5.

Judge in Performers' Blacklisting Lawsuit Says Meta Policy Sounds 'Nefarious'

A California federal judge, overseeing a lawsuit claiming that Meta conspired with OnlyFans to blacklist rival premium fan platforms’ talent, said during a hearing Wednesday that the tech giant’s lack of archiving of its “Dangerous Organizations and Individuals” (DOI) list sounded “nefarious.”

Blush, QueerCrush Partner for Pride Month

Blush has teamed up with QueerCrush to celebrate Pride Month.

SWR Data to Publish 'AI and Adult Industry' Report

Adult industry market research firm SWR Data is publishing a report on artificial intelligence on July 30.

LA Direct's Derek Hay Pleads Guilty in Conspiracy Case

LA Direct Models’ Derek Hay pleaded guilty Tuesday in Los Angeles to one charge of conspiracy to commit pandering and a charge of perjury, as part of a plea agreement with the California attorney general in a criminal case.

Show More