As was expected, Uber Technologies and Postmates Inc. filed a legal challenge against California’s AB5 “Gig Economy” law this past week in the United States District Court for the Central District of California, which is appealable to the Federal Ninth Circuit Court. AB5 was adopted by the State legislature this past year to codify the “Dynamex decision”, which outlines who can work as independent contractors, and more specifically, that drivers using app-based technologies to perform work should be classified as employees.
(A) that the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
(B) that the worker performs work that is outside the usual course of the hiring entity’s business; and
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