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CA District Judge Denies Request for an Injunction Against California’s Worker Misclassification Law

On Monday, Judge Dolly M. Gee of the U.S. District Court for the Central District of California denied a request to block enforcement of California’s AB 5, a law intended to combat worker misclassification by applying potential criminal penalties for entities that willfully misclassify their employees. In her opinion, Gee stated that the law’s public benefit in setting a living wage and regulating employment outweigh concerns raised by Uber and Postmates.

 

The lawsuit from the companies contends that California’s AB 5 violates the US Constitution and unfairly singles out an arbitrary group of industries. While Judge Gee’s order does not prevent the lawsuit from moving forward, it does allow California to continue to enforce the law against entities that misclassify their employees while the suit makes its way through the courts. In addition to the lawsuit, Uber, Postmates, and other gig firms are pursuing a ballot initiative to roll back AB 5.

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