Uber Drivers – Employees or Independent Contractors

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Brian Bohn, Partner – Cannon Law

Oct. 15, 2015

Currently pending in the United States District Court for the Northern District Court of California is a class action lawsuit filed by Uber drivers against Uber. The drivers claim to be entitled to reimbursement for expenses, such as gas and vehicle maintenance. Additionally, the suit challenges Uber’s practice of informing passengers that gratuity is included in the fair, while the Drivers never in fact receive gratuity. The fundamental issue before the court is whether Uber drivers are classified as independent contractors or employees. If the court finds that drivers are in fact employees, Uber may be forced to pay drivers for health insurance, worker’s compensation, and work expenses.

The court’s ruling on this issue may have a staggering impact beyond Uber. There has been a surge of new companies utilizing a business model similar to Uber, relying on independent contractors to deliver food, run errands and clean houses.

Recently, the California Employment Development Department ruled that a former driver for Uber acted more like an employee than a contractor, citing to the fact that Uber controlled almost every aspect of the driving experience and had the right to terminate the diver at will.

With the popularity and use of Uber continuing to increase, the Court’s ruling on this issue could dramatically affect how Uber conducts business.

Whether or not an Uber driver is an employee or independent contractor, when you are injured in a car accident, you need to Call the Cannon. Uber driver, Uber passenger, it doesn’t matter…Cannon Law will handle your claim from start to finish. One call to Cannon Law and we will take it from there. Call the Cannon now at 888-877-7141 and speak with an attorney today.