Uber lets some drivers in California set their own fares as the ride-hailing giant grapples with the state's new gig economy laws.

As part of a test, Uber lets drivers incrementally increase fares up to five times what Uber sets as the base price, The Wall Street Journal reported. Uber flipped the switch on the test this morning, and it's limited to drivers who pick up riders from airports in Palm Springs, Sacramento and Santa Barbara.

Allowing drivers to set their own fares could help Uber argue its case that its workers are independent contractors rather than employees entitled to certain benefits under state law.

California's Assembly Bill 5, which went into effect Jan. 1, lays out a series of standards that determine whether workers are classified as employees – which are protected by minimum wage and sick leave – or contractors without those safety nets.

The ride-hailing company confirmed the feature and its purpose to CNET.

USA TODAY reached out to Uber for comment.

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"Since AB5 (Assembly Bill 5) has gone into effect, we've made a number of product changes to preserve flexible work for tens of thousands of California drivers," Uber said in a statement to CNET. "We're now doing an initial test of additional changes which would give drivers more control over the rates they charge riders."

Uber set a commission standard that affects rides in California, and it lets drivers in the state see where riders are headed before the drivers pick them up, The Wall Street Journal reported. Previously, drivers accepted riders without knowing their final destination.

Uber sued the state of California in 2019, calling the AB5 law unconstitutional before it took effect.

Uber argued that the law would unfairly target gig economy companies and workers. Before Uber and Lyft went public in 2019, both companies said reclassifying drivers as employees could significantly hurt their business models and financial performance.

Uber plans to let drivers set fares lower than its standard price soon, decreasing fares 10% at a time, the company told WSJ. Drivers will be allowed to opt out of surge pricing.

Follow Dalvin Brown on Twitter: @Dalvin_Brown.