Uber sues California over gig-economy labor law

SAN FRANCISCO: Ride-hailing giant Uber and delivery company Postmates have filed a lawsuit against the state of California, claiming a new law that would treat gig-economy freelancers as employees is unconstitutional.

Uber warned earlier this year that it would oppose any change of status for its drivers, which will cost the company extra in social security costs. Uber and its American rival Lyft have each put aside 30 million dollars to organise a referendum, allowed under Californian law, to replace the legislation with a compromise on social rights that has been put before the state Governor.

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