A federal judge is refusing to exempt ride-hailing company Uber and on-demand meal delivery service Postmates from a broad new California labor law while she considers their lawsuit.
U.S. District Judge Dolly Gee on Monday denied the companies' request for a preliminary injunction protecting them from the law. It aims to give wage and benefit protections to people who work as independent contractors.
The companies say the law that took effect last month violates federal and state constitutional guarantees of equal protection and due process. It created the nation's strictest test by which workers must be considered employees.
Uber is considering an appeal.