Uber Allegedly Misclassifies Drivers As Contractors

Uber, the popular ride-share company, has recently come under scrutiny for its wage and hour practices.

According to news reports and recently filed California Uber class action lawsuits, the company has made a habit of classifying Uber drivers as contractors instead of employees. While this classification works out in favor of Uber by getting them out of providing drivers with certain benefits, it hurts Uber drivers in the long run.

Employee Misclassification Hurts Workers

Some benefits individuals receive by being classified as employees of a company include minimum wage, health insurance, overtime benefits, workers compensation, unemployment benefits, proof of employment and lower taxes.

That last benefit is especially important, since workers who are classified as “independent contractors” are required to pay what would traditionally be the employer’s portion of payroll taxes. When companies like Uber choose to classify their employees as contractors, they essentially avoid many legal obligations to their workers and end up saving money.

Uber may not be the only company engaging in possible wage and hour violations when it comes to contractor classification. The National Employment Labor Project published a 2012 report that states about 10 to 30 percent of employers engage in employee misclassification.

Employee Misclassification Trend

According to an employment attorney currently working on both Lyft and Uber lawsuits regarding employee misclassification, the root of this wage and hour issue stems from organizations like these ride-share companies attempting to misrepresent the central function of their business in order to avoid responsibilities and related expenses relevant to their workers.

Uber and many other companies achieve this misrepresentation by claiming that they are not really employing individuals like drivers; instead, they are simply providing a platform to connect contractors with clients.

In this way, Uber drivers are not truly Uber employees, but rather Uber independent contractors. However, this is a form of misrepresentation, akin to a strip club calling itself a bar that just happens to have a venue for adult performers.

By denying California Uber drivers and Uber workers in other states employee status, this leaves these so-called independent contractors in a vulnerable position and forces them to rely on subjective customer ratings in order to land driving gigs. Furthermore, if an Uber driver faces discrimination from consumers or wish to unionize, they also cannot do so because of their Uber independent contractor status.

Some have tried to argue that jobs like Uber are secondary sources of income for individuals and are becoming more prevalent in our modern economy. However, for many, their position as an Uber driver may be their only source of income or just one of many gig jobs they work in order to pay for food, rent, and other living expenses.

On top of worrying about getting enough gigs to pay their bills, their Uber drivers must also worry about what will happen because of their lack of employee benefits and protections.

If you are an Uber driver living and working in the state of California and believe that you have been misclassified as a contractor rather than an employee, you may be eligible to pursue and Uber lawsuit or join an Uber class action lawsuit.

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

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