California AB5 Given Latitude By Federal Judge

California AB5 Withstands Initial Preliminary Injunction By Uber, Postmates

Uber and Postmates were given a slap across the face as US District Court Judge Dolly M. Gee stated she would deny a preliminary injunction requested to shield workers from the application of California Assembly Bill 5. Foreclosurepedia has exclusively published the Court Order below. What remains now is whether or not the Mortgage Field Services Industry and US government agencies such as the US Department of Housing and Urban Development will enforce the law. Gee stated,

Plaintiffs have not shown serious questions going to the merits—the critical factor in determining whether to issue a preliminary injunction—and, though Company Plaintiffs have shown some measure of likelihood of irreparable harm, the balance of equities and the public interest weigh in favor of permitting the State to enforce this legislation. Accordingly, the Winter factors weigh against enjoining enforcement of AB 5 against Uber and Postmates, and the Court therefore DENIES Plaintiffs’ Motion. — Emphasis added by Foreclosurepedia.

The Daily News reported,

Uber Technologies failed to persuade a judge to shield its drivers from California’s gig-worker protection law while the company challenges the landmark measure in court.

A federal judge in Los Angeles rejected a request by Uber and Postmates to temporarily block enforcement of Assembly Bill 5, which aims to convert gig-economy workers from independent contractors to employees with benefits. Uber and Postmates didn’t ask the judge to shield other companies from the law.

U.S. District Judge Dolly M. Gee had signaled during a Feb. 7 hearing that she would deny the preliminary injunction sought by Uber and Postmates.

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