Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Spencer Platt/Getty Images.

Uber and Postmates are suing California over a law set to take effect this week that will provide gig-economy workers with additional employment protections.

Where it stands: The lawsuit was filed in a Los Angeles federal court Monday, and the law is set to take effect Wednesday. One driver from each company joined the suit as plaintiffs, arguing that the measure would breach equal protections provided by the Constitution.

Why it matters: The suit challenges the constitutionality of a recently passed law that codifies stricter requirements to classify workers as independent contractors.

  • AB5, as the law is known, has been controversial because it essentially implies that workers for gig economy companies like Uber and Postmates should be full employees.
  • Many of these companies pushed back against the law, arguing for a new form of employment for their businesses, and now some of them are planning a state ballot measure to undo it.

Flashback: A few months ago, California lawmakers passed a bill that codifies (and even extends) a 2018 state supreme court decision, known as Dynamex, which established a three-pronged test for classifying workers as independent contractors instead of the legal test the state had been using.

  • Lawmakers included a long list of exemptions to the new law, at times entirely exempting them, while others got a delay for implementation or specific parameters such as quantity of work.
  • Companies like Uber, Lyft, Postmates, and Doordash argue that the state should instead establish a new set of regulations and protections for gig workers instead of forcing them into the existing categories.
  • Uber, Lyft, and Doordash have pledged $90 million towards a state ballot measure for 2020.

What they're saying:

Many drivers and I met with California lawmakers and staff numerous times to help them understand how devastating this would be to us and the way we want to work. It became apparent that many were ill-informed of the real consequences of this bill, or they had already made up their minds to support it. My voice and my rights to due process were ignored, as were the rights of the rideshare companies and the hundreds of thousands of Californians who choose this type of work.
Lydia Olson, Uber driver and plaintiff in this lawsuit, via Facebook

The big picture: AB5 has been controversial in other industries as well. For example, some freelance journalists have expressed frustration with the law's seemingly arbitrary limit of 35 contributions per news outlet annually, and that it risks pushing a number of companies to simply no longer work with California-based writers.

Go deeper:

Editor's note: This article has been updated with more details, context and a link to the lawsuit.

Go deeper

Using apps to prevent deadly police encounters

Illustration: Sarah Grillo/Axios

Mobile phone apps are evolving in ways that can stop rather than simply document deadly police encounters with people of color — including notifying family and lawyers about potential violations in real time.

Why it matters: As states and cities face pressure to reform excessive force policies, apps that monitor police are becoming more interactive, gathering evidence against rogue officers as well as posting social media videos to shame the agencies.

Dan Primack, author of Pro Rata
11 hours ago - Technology

TikTok gets more time (again)

Illustration: Aïda Amer/Axios

The White House is again giving TikTok's Chinese parent company more to satisfy national security concerns, rather than initiating legal action, a source familiar with the situation tells Axios.

The state of play: China's ByteDance had until Friday to resolve issues raised by the Committee on Foreign Investment in the U.S. (CFIUS), which is chaired by Treasury secretary Steve Mnuchin. This was the company's third deadline, with CFIUS having provided two earlier extensions.

Federal judge orders Trump administration to restore DACA

DACA recipients and their supporters rally outside the U.S. Supreme Court on June 18. Photo: Drew Angerer via Getty

A federal judge on Friday ordered the Trump administration to fully restore the Deferred Action for Childhood Arrivals program, giving undocumented immigrants who arrived in the U.S. as children a chance to petition for protection from deportation.

Why it matters: DACA was implemented under former President Obama, but President Trump has sought to undo the program since taking office. Friday’s ruling will require Department of Homeland Security officers to begin accepting applications starting Monday and guarantee that work permits are valid for two years.