(Reuters) – 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.
FILE PHOTO – The company logo for Uber Technologies Inc is seen at the New York Stock Exchange , May 10, 2019. REUTERS/Brendan McDermid/File Photo
U.S. District Judge Dolly Gee in Los Angeles said that while the companies had proven they could suffer a degree of irreparable harm as a result of the law, the potential risks to them were less important than the public interest in setting a living wage and regulating employment.
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.
Gee did not rule on the merits of the case and her decision does not stop the lawsuit.
Postmates said…
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