Uber challenge to California contractor law revived by U.S. appeals court

and subsidiary Postmates Inc challenging a California law that would require them to provide more proof that workers are independent contractors, a classification that helps the companies save millions.

The office of California Attorney General Rob Bonta, a Democrat, said in a statement that it was reviewing the decision and assessing its next steps. AB5, which took effect in 2020, imposes a higher bar to show that workers are independent contractors rather than employees, who have greater legal protections and can cost companies up to 30% more.

That means Uber is subject to the law while pet-sitting service Wag, which has been called "Uber for dogs," is not.

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