A court ruled that Assembly Bill 5 (AB5), a California law classifying Uber and other ride-hailing and delivery drivers as employees rather than independent contractors, is constitutional, despite Uber's appeal.
Why it's significant: The ruling validates the power of state lawmakers to control gig platforms without breaching the “equal protection” rights of these companies under the U.S. Constitution. The larger context: It's not clear what will happen. The battle over Prop 22, which reclassified workers as independent contractors, is still working its way through the California court system. It remains to be seen whether Prop 22 is constitutional in California.
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