California was the first state to initiate regulations for ride hailing company Uber in 2013, with state legislators combating the company over rights for Uber drivers.

While Uber classifies its drivers as independent contractors, many have argued that the drivers should be classified as employees based on the demanding schedule and how many expenses drivers accumulate.

In June 2015, an Unemployment Insurance Appeals Board judge had determined that a former Uber driver should be classified as an employee.

Later in September 2015, a federal San Francisco driver had granted class action status to Uber drivers who argued that they were employees and were entitled to reimbursement for gas and other out of pocket expenses.

Recently, on April 20, 2016 a committee in California’s Democrat led Assembly had scheduled a vote on the first statewide law to give rights for Uber drivers.

These rights included giving the drivers the ability to form a union like system of independent contractors, following a similar citywide ordinance passed in Seattle the previous year.

The Seattle city ordinance still treats Uber drivers as contractors, but gives them the option to choose an organization to represent them in the case of earning fair wages and treatment companies like Uber.

However not all employment advocates are on board with California’s proposal, with opponents arguing that Uber drivers cannot be treated as typical employees due to the unique structure of Uber.

The opponents further argue that giving rights for Uber drivers would force the creation a new employment category, which is not likely to happen under the more conservative members of Congress.

Overview of Uber Driver Independent Contractor Problems

According to current federal law, courts determine if an employee is an independent contractor based on how much control the company has over the employees’ lives and whether or not the employees’ work is vital to the company’s business model.

Supporters of the California bill, as well as supporters for rights for Uber drivers in general, state that Uber depends on the availability of its drivers for its daily business operations.

Uber has maintained that its drivers are independent contractors, who work for themselves and not for the company.

The company essentially argues that its purpose was to make ride hailing a much easier process, and allows willing drivers to earn extra money while providing said rides.

The company currently employs over 400,000 drivers, with many of them complaining of insufficient wages and incurring out of pocket expenses related to their cars.

In the wake of the issues surrounding rights for Uber drivers, Uber’s main rival Lyft has shown some forms of compromise.

In November 2015, Lyft co-founders joined Seattle labor leader David Rolf in backing the extension of benefits like injury compensation to independent contractors.

Harris states that he is confident in the ride share giants coming around to accept his point of view, as “both sides have to lose some, and they have to realize that coming together in a grand compromise is the better path to protecting their interests than trying to beat the other over the head.”