Does AB5 apply to Uber drivers?

Starting in 2020, drivers for both rideshare companies will be considered employees. Undeterred, Lyft and Uber, along with Door Dash have united and vowed to spend $90 million to pass a ballot initiative in 2020 exempting their workers from AB 5.



As of early 2026, the application of California’s Assembly Bill 5 (AB5) to Uber and Lyft drivers is largely superseded by Proposition 22. While AB5 was designed to classify gig workers as employees, California voters passed Proposition 22 in 2020, which allows rideshare and delivery companies to continue classifying their drivers as independent contractors. This legal status has been upheld through several rounds of appeals, including a pivotal 2023 ruling. Under the 2026 framework, drivers remain contractors but are entitled to specific "occupational" benefits, such as a minimum earnings guarantee while "active" (engaged in a trip), a healthcare subsidy for those working sufficient hours, and accident insurance. The debate continues in other states, but in California, Prop 22 remains the active law of the land for Uber drivers.

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U.K. Uber Drivers Are Now Considered Employees. Is the U.S. Next? The U.K. Supreme Court shook up the gig economy when it ruled that Uber must classify drivers as workers rather than independent contractors.

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Listed below are the detailed requirements to be eligible as an Uber driver in the United States. You must have attained the age of minimum 21 years. You must be a US resident or have an appropriate work permit to be legally employed in the United States.

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If you work as a driver for Uber, the company classifies you as an independent contractor for tax and other legal purposes. This means you get none of the legal protections given to employees under federal labor law, such as the right to a minimum wage, overtime pay, and the right to unionize.

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Drivers using Uber are independent contractors who work on their own schedule with flexible hours.

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An Uber boss has issued a stark warning that the EU's proposal to classify gig workers as de facto employees could see the ride sharing firm shut down operations across the bloc and see price hikes of up to 40% in some European cities, reports The Financial Times.

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Many H1B visa holders ask if they are permitted to drive for Uber because it is one of the simplest and most convenient methods to make money in the United States. The H1B visa's limitations, however, prevent H1B visa holders from working as Uber drivers. So the short answer is NO.

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