California’s Ninth Circuit Issues Another Body Blow to AB5 – IOTW Report

California’s Ninth Circuit Issues Another Body Blow to AB5

RedState: The Ninth U.S. Circuit Court of Appeals is on a tear this week, dismantling the court rulings that have supported AB5, the so-called California gig workers law. Crafted to target rideshare companies and the trucking industry, since AB5 was signed into law in 2019, it has upended the careers of approximately 4.5 million freelancers, independent contractors, and the self-employed, and destroyed the independent contractor model in the state.

On Monday, the Ninth Circuit overturned a Superior Court of Alameda decision that deemed California’s Proposition 22, which allowed rideshare drivers to maintain their status as independent contractors, unconstitutional. Proposition 22 was placed on the November 2022 ballot and approved by a wide margin. It also helped to gut AB5 and set precedent to discourage similar laws being drafted in other states, which is why Big Labor and their allies in the California Attorney General’s office continue to try and overturn the will of the voters as well as mount challenges to any lawsuit brought. The Ninth Circuit bookended the week of bad news for proponents of AB5 by serving them yet another defeat. MORE

7 Comments on California’s Ninth Circuit Issues Another Body Blow to AB5

  1. Company I worked for 2019-21 owned Yellow Cab of Orange County, CA (where Disneyland resides). They bought it before Uber, and it was quite profitable, before Uber. They were looking to get rid of it… and then AB5 happened, and they just shut down the entire operation and sold all the cars.
    I still do books for a small business owner in CA, who uses contractors. Well none of them are contractors anymore. He fortunately could afford to have them as W-2 employees, but it can be a huge challenge for some businesses.

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