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.
The legislation, known as Assembly Bill 5 and due to go into effect on Wednesday, would mean that -- under certain conditions -- independent contractors are classified as employees and granted the minimum salary and health insurance benefits that entails.
This would include drivers for both Uber and Postmates.