Uber, Postmates sue California

Ride-hailing company Uber and delivery service Postmates filed suit against the state of California.

The suit challenges a labor rights law slated to go into effect this week. The companies claim the law, which would classify gig workers as employees rather than contractors, is unconstitutional.

The suit takes issue with exemptions in the law for direct salespeople, travel agents and others.

“There is no rhyme or reason to these nonsensical exemptions, and some are so ill-defined or entirely undefined that it is impossible to discern what they include or exclude,” according to the complaint.

Read more from Bloomberg.