Uber drivers are employees, not contractors: California Labor Commission
Source: Reuters
A San Francisco-based driver for smartphone-based ride-hailing service Uber is an employee, not a contractor, according to a ruling by the California Labor Commission.
The ruling, filed on Tuesday in state court in San Francisco, said Uber is "involved in every aspect of the operation." It is the latest in a host of legal and regulatory challenges facing Uber in the United States and other countries.
Uber had argued its drivers are independent contractors, not employees, and that it is "nothing more than a neutral technology platform."
If Uber drivers are employees, that opens Uber up to higher costs, including Social Security, workers compensation and unemployment insurance. That could affect its valuation, currently above $40 billion, and the valuation of other companies that rely on large networks of individuals to provide rides, clean houses and other services.
Read more: http://www.reuters.com/article/2015/06/17/us-uber-california-idUSKBN0OX1TE20150617
closeupready
(29,503 posts)samsingh
(17,599 posts)philosslayer
(3,076 posts)n/t
Fuddnik
(8,846 posts)Uber treats their drivers like shit. Don't allow tipping, cuts rates for drivers on a whim, and uses surge pricing to screw customers.
They're the Walmart of transportation.
lonestarnot
(77,097 posts)SunSeeker
(51,572 posts)dembotoz
(16,808 posts)alboe
(192 posts)Even though I worked for them full-time. It's a way these companies are keeping themselves from having to pay all this stuff. This is a great ruling.
former9thward
(32,025 posts)Uber does not direct its drivers. They work when they feel like it and for as long as they want. They fit every definition of contractor used in labor law.
closeupready
(29,503 posts)jamzrockz
(1,333 posts)drivers work as contractors. They actually pay the taxi companies to drive for them but somehow these guys are not contractors? I think this is just an attempt to kill the company and help out the traditional taxi companies who pay for state licenses.
The courts should treat everybody fairly and not favor industries that support state revenue.
Sunlei
(22,651 posts)quadrature
(2,049 posts)Uber is a great idea
appalachiablue
(41,145 posts)maybe 3-4 months ago involving FED EX. The judge ruled the workers were FE employees and met all the criteria such as driving company vehicles, wearing uniforms, etc. I'm pro worker and labor so I see this Uber case positively.