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 © 2026 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

Venus Berlin Joins ASACP as Media Sponsor

Venus Berlin has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

XBIZ Miami's Host Hotel Sold Out; Additional Hotel Added

Guest rooms at XBIZ Miami’s exclusive conference venue, Goodtime Hotel in South Beach, are now completely sold out.

Penthouse Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of Penthouse World Media in a case against a website using an infringing domain.

'Collective Corruption' Relaunches Through PAYSITE

Fetish and BDSM membership site Collective Corruption has relaunched through PAYSITE.

RocketGate Taps Joël Drapeau for Senior Account Executive Role

Payment processing company RocketGate has hired industry veteran Joël Drapeau as its new account executive for business development and client relations.

VR Reloaded: Inside the Next Era of Immersive Adult Entertainment

For years, virtual reality in adult entertainment hovered somewhere between “quirky novelty” and “exciting promise of things to come.” While the technology hinted at a radically different way to experience erotic media, early experiments often required bulky headsets, complicated downloads, and production techniques that weren’t yet quite up to the task.

Pineapple Support Names Ocean Hanx Brand Ambassador

Pineapple Support has named creator Ocean Hanx as its newest brand ambassador.

Meta Restores Playboy Germany Facebook Page After Court Order

The Facebook page of Playboy Germany, the German-language edition of the magazine, is now back online after a two-month suspension by Meta, following an order by the Düsseldorf Regional Court.

UPDATED: European Commission Unveils AV App, Addresses Hacks

The European Commission’s age verification app is now technically ready and will soon be available for EU citizens to use in order to prove their age when accessing online platforms, European Commission President Ursula von der Leyen announced Tuesday.

Syren De Mer, Eddie Patrick Cap AEBN's Top Stars for 1st Quarter of 2026

AEBN has revealed its most popular performers in straight and gay theaters for the first quarter of 2026.

Show More