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Uber, Postmates sue to challenge California's new labor law

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Posted at 10:47 PM, Dec 30, 2019
and last updated 2019-12-31 01:47:25-05

SACRAMENTO, Calif. (AP) - Ride-share company Uber and on-demand meal delivery service Postmates are suing to block a broad new California law aimed at giving wage and benefit protections to people who work as independent contractors.

The lawsuit filed in court Monday argues that the law set to take effect Wednesday violates federal and state equal protection and due process guarantees.

The law creates the nation's strictest test by which workers must be considered employees.

It could set a precedent for other states. Assemblywoman Lorena Gonzalez says the law extends employee rights to more than a million California workers who lack benefits.