Uber, Postmates Sue California Over Labor Law

UBER AND POSTMATES FILE FEDERAL LAWSUIT OVER CALIFORNIA LAW DESIGNED TO PROTECT "GIG WORKERS."

(CNN) – Uber and Postmates are suing California over its law designed to protect gig workers.

The companies say California statute AB5 violates both the U.S. and California state constitutions.

The federal lawsuit calls the measure “vague and incoherent.”

AB5 is a sweeping law that forbids the use of contract workers in many instances.

It requires companies like Uber and Postmates to treat workers as employees and provide benefits like paid sick days, minimum wage and health insurance.

The new law is set to take effect in 2020.

Categories: Business