Supreme Court Rejects Uber's AB5 Appeal

The US Supreme Court has declined to hear Uber and Postmates' appeal against California's Assembly Bill 5 (AB5), which mandates that gig economy companies classify their drivers as employees rather than independent contractors. This decision upholds a previous ruling by the 9th US Circuit Court of Appeals, rejecting the companies' claims that AB5 unfairly targets their services while exempting others. Although California voters passed Proposition 22 in 2020 to allow these companies to classify drivers as independent contractors, the Supreme Court's ruling reinforces the ongoing legal debates surrounding worker classification. Critics argue that classifying drivers as independent contractors undermines essential protections like minimum wage and overtime pay. Meanwhile, the US Department of Labor is moving forward with proposed regulations that could further tighten independent contractor classifications at the federal level, facing opposition from business groups. Theane Evangelis, an attorney for Uber, maintains that Proposition 22 ensures drivers' independence while providing certain benefits.