Uber and Postmates Lose Appeal to Overturn California Gig Worker Status Law

Jun 10, 2024, 05:13 PM

Uber and its subsidiary Postmates have lost their appeal to overturn California’s gig worker status law. A U.S. appeals court on Monday, June 10, 2024, rejected the companies' bid to revive a challenge to the law, which could force them to treat drivers as employees rather than independent contractors. This ruling could have significant financial implications for Uber and other app-based companies, as employees are typically more expensive to maintain than independent contractors. The court's decision marks a significant setback for gig economy companies that have been fighting against regulations that would alter their business models.