Olson v. State of Cal., 104 F.4th 66 (9th Cir. 2024) (en banc)

California’s Assembly Bill 5 (“AB 5”), which was enacted in 2018, subjects different but similar types of workers to different kinds of classification tests. In December 2019, rideshare driver Lydia Olson, alongside Uber and Postmates, filed a complaint against the State of California attempting to enjoin the state from enforcing AB 5 on Equal Protection and Due Process grounds, among others. In this en banc opinion, the Ninth Circuit held that AB 5 properly provides one test to determine the classification of Uber drivers as either independent contractors or employees, while using another test for dogwalkers who provide services through the app Wag! The Ninth Circuit explained that the distinction between Uber and Wag! is rational and does not violate the Constitution because the California legislature perceived “Uber, Postmates, and other transportation and delivery services as more substantial contributors to the problem of [worker] misclassification than referral agencies engaged in other services [like dog-walking].”