Since California’s passage of AB5, several lawsuits have arisen that challenge the law, with others testing its limits and impact. More recently, California has begun its attempts to enforce the law by targeting Uber and Lyft.
In May, California Attorney General, Xavier Becerra, filed a lawsuit in San Francisco County Superior Court alleging Uber and Lyft misclassify their drivers, arguing the companies are exploiting thousands of California workers who should be classified as employees rather than as independent contractors, as the companies currently classify their drivers. Most recently, the California Labor Commissioner, Lilia García-Brower, filed a similar lawsuit in Alameda County.
Since the passage of AB5, companies like Uber and Lyft have faced an onslaught of lawsuits both on the governmental level and from drivers. The companies continue to fight back not just within the lawsuits but also with their own push to be exempt from AB5.
The tandem of lawsuits by the State of California are an example for all business impacted by AB5. They will also be part of a series of lawsuits that provide major tests of whether AB5 is here to stay and will require any business normally operating with independent contractors to adjust its model, or if the attacks on the law will succeed and allow companies like Uber and Lyft, along with major industries like California’s trucking industry, to return to their normal mode of operation.
With questions around AB5 continuing, an experienced legal team can help navigate a potentially confusing and ever-evolving time for businesses, particularly with the ever-changing landscape for companies during the current pandemic.