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

Open Mind AI Seeks Inclusion in EU's AI Debate

New European industry initiative Open Mind AI has penned a letter asking EU authorities to include adult companies and creators in ongoing discussions on setting up a legal framework for AI content.

Canadian Law Professor: Proposed Age Verification Bill 'Will Make Things Worse'

Leading Canadian newspaper The Globe and Mail this week published an op-ed written by a legal scholar outlining fundamental issues with the Conservative-backed age verification bill currently making its way through Parliament.

UK Labour Government Confirms it Will Continue Baroness-Led 'Porn Review'

The U.K. Labour government of Prime Minister Keir Starmer has confirmed it will continue the controversial full review of British pornography laws ordered by former Tory Prime Minister Rishi Sunak in July 2023.

AEBN Publishes Popular Searches for July and August

AEBN has released the top search terms for the months of July and August from its straight and gay theaters in all 50 states and the District of Columbia.

SWR Data Survey Probes Concerns About Political Attacks on Industry

SWR Data, an adult-sector market research firm led by industry veterans Mike Stabile and MelRose Michaels, has released data from its upcoming 2024 State of the Creator report, illustrating creators’ concerns about political attacks on the industry.

FSC Urges SCOTUS to Strike Down 'Unconstitutional' Texas Age Verification Law

The Free Speech Coalition (FSC) urged the U.S. Supreme Court through a brief filed Monday to strike down Texas’ age verification law as unconstitutional.

Japanese Manga Industry Hit by Credit Card Companies' Anti-Porn Restrictions

Japanese manga retailers are reporting pressure from multinational credit card companies — many based in the U.S. and targeted by anti-porn religious conservatives — to censor their content if they wish to maintain their current payment processing arrangements.

Netherlands Government Continues Porn Probe Following Abuse Allegations

The Dutch government plans to continue investigating the local porn industry in the Netherlands, following a series of abuse allegations involving photographer and self-styled “model scout” Daniël van der W.

Clips4Sale Releases '20 Years of Fetish' Data Survey

Clips4Sale (C4S) has released a report based on 20 years of data and analysis to show how kink and fetish tastes have changed since the site began.

Grooby, Yanks Ink Website Management Deal

Grooby will begin managing Yanks.com under a new company, Blue.xxx.

Show More