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Uber’s challenge to Calif. contractor law revived by U.S. appeals court By Reuters

Uber's challenge to Calif. contractor law revived by U.S. appeals court

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© Reuters. FILE PHOTO: The logo of Uber is seen at a temporary showroom at the Promenade road during the World Economic Forum (WEF) 2023, in the Alpine resort of Davos, Switzerland, January 20, 2023. REUTERS/Arnd Wiegmann

(Reuters) – A U.S. appeals court on Friday revived a lawsuit by Uber Technologies (NYSE:) Inc and subsidiary Postmates Inc claiming a California law that makes it more difficult for them to save money by treating workers as independent contractors is unconstitutional.

In a major win for the gig economy, which heavily relies on contractors, the 9th U.S. Circuit Court of Appeals said the state must face claims that the law improperly singles out “gig economy” companies while exempting other industries.

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