Federal Judge rules a preliminary Injunction against AB5

Cold Fusion

“We are encouraged by the ruling,” said a person familiar with the case at Uber, at the time of the California state ruling. “It demonstrates that the drafting of AB 5 was ‘ill-conceived’ and we believe contains serious legal flaws.”

Gig worker companies like Uber(NYSE: UBER), Lyft (NASDAQ: LYFT), Postmates, DoorDash and Instacart also use independent contractors, and the Cal Cartage Transportation ruling may bode well for these companies' battle against AB 5. Uber and Postmates which recently filed a lawsuit against the state of California to block the law.