August 5, 2020

Volume X, Number 218

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Who’s Up Next? Now It’s Ride-Share and Delivery Companies’ Turn to File Suit Challenging California’s Controversial New Independent Contractor Test

AB 5, California’s hastily passed and controversial independent contractor statute, which codifies the use of an “ABC test,” is set to go into effect on January 1, 2020.

Already, the California Trucking Association has filed suit challenging the statute.

As have freelance writers and photographers.

Now, it’s ride-share and delivery companies’ turn to file suit.

Those companies have already commenced the process to create a ballot initiative that would allow voters to decide whether to exempt ride-share and delivery drivers from the “ABC test.”

Now, on December 30, 2019 – just two days before AB 5 goes into effect – two of those companies (and two drivers) have filed suit in Los Angeles in the United States District Court for the Central District of California, seeking to enjoin AB 5 as it pertains to them.

In the complaint, they argue that AB 5 is an “irrational and unconstitutional statute designed to target and stifle workers and companies in the on-demand economy.”  They contend that the statute violates various provisions of the California Constitution, including the equal protection clause, the inalienable rights clause, and the due process clause.

The equal protection argument is particularly fascinating as the companies contend that “[t]here is no rhyme or reason to the[] nonsensical exemptions” that were granted at the eleventh hour to some industries and professions.

©2020 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume X, Number 1

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About this Author

Michael S. Kun, epstein becker green, los angeles, labor, employment
Member

Mr. Kun's practice includes:

  • Litigating more than six dozen class actions and collective actions in California, New York, Georgia and Maryland involving a variety of employment issues, including discrimination and wage-hour claims, and successfully defeating motions for class certification on such claims. The sizes of the putative classes have ranged from 75 to approximately 15,000 employees.

  • Litigating a wide variety of employment-related claims, including discrimination, harassment,...

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