Uber and Postmates lost a bid to temporarily block California's new gig-worker law, a legal setback that could immediately affect their financials

Megan Hernbroth/Business Insider

• Uber and Postmates's lawsuit against the state of California suffered a big setback on Monday
• A Los Angeles judge rejected a bid to temporarily block California's gig-worker law from going into effect while Uber and Postmates challenge it in court. 
• Gig-economy companies like Uber and Lyft have been fighting fiercely to block Assembly Bill 5, which is aimed at giving wage and benefit protections to people who work as independent contractors.
• The ruling means that the new law will be enforced while Uber and Postmates sue the state of California, and could have serious financial effects on both companies. 
• A statement from Uber reiterated the company's commitment to continuing to challenge the case in court.
• Visit Business Insider's homepage for more stories.

Postmates and Uber's lawsuit against California hit its first bump on Monday, as the two companies lost a preliminary motion to temporarily block California's gig-worker law from going into effect while they challenge it in court. 

A Los Angeles District Court judge presiding over the case said that the interests of the public outweighed any 'irreparable' harm that the new law could wreak on the companies' finances.  

See the rest of the story at Business Insider

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