Uber sues California over gig-economy labour law

In the suit, Uber and its co-plaintiffs argue the law targets independent service providers while exempting direct salespeople, travel agents, construction truck drivers and commercial fishermen. FILE PHOTO | ANDREW CABALLERO-REYNOLDS | AFP

What you need to know:

  • Uber warned earlier this year that it would oppose any change of status for its drivers, which will cost the company extra in social security costs.
  • Uber and its American rival Lyft have each put aside $30 million to organise a referendum to replace the legislation.

Ride-hailing giant Uber and delivery company Postmates have filed a lawsuit against the state of California, claiming a new law that would treat gig-economy freelancers as employees is unconstitutional.

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