This poses a challenge to the business model of companies like Uber, which refers to drivers on its network as contractors. Uber has announced that it will appeal Monday's court ruling. Should it be upheld, the company may be forced to pay its drivers tens of millions in compensation, as will other businesses which fail to properly classify their workers as employees under AB5. Khosrowshahi became chief executive of Uber in August 2017, reportedly having received almost $200 million from the company to succeed former CEO Travis Kalanick.