Supporters of AB 5 have said that the legislation is necessary, as some companies have exploited workers for decades under unfair labor contracts.
The policy comes amid driver-led protests outside Uber's San Francisco's headquarters.
The cap was originally implement last August, in an effort to address growing traffic congestion in the city, as a one-year ban on new vehicle licenses.
Splend primarily rents vehicles to Uber drivers, in addition to supplying other ride-hailing and -sharing groups such as as Bolt, Kapten, and Via Van.
Currently, there are about 90,400 ride-hailing drivers in Canada.
A case brought against Uber by Los Angeles-based Diva Limousine argues that Uber's business model — as it pertains to drivers — financially harms its competitors.
A key factor in the board's decision was the ability for Uber drivers to choose when to work.
The strike, planned ahead of Uber's Friday initial public offering, is being backed by the New York Taxi Workers Alliance.
Uber sued reportedly out of fear the cap will be made permanent.
Critics of the minimum wage mandate, mainly ride-hailing companies, say that the proposal will make rides more expensive.