Are California Uber Drivers Employees or Independent Contractors?

A recent class action was filed alleging that California Uber drivers have been misclassified as independent contractors rather than employees.

The on-demand ride service employs over 300,000 Uber drivers in the state of California alone.

Uber, which was recently valued at over $60 billion, classifies its drivers as independent contractors rather than employees, allowing the company to avoid paying unemployment insurance, workers’ compensation, Social Security, and other important benefits.

The company can also avoid paying for essential expenses of working for a ride service, such as gas, car maintenance, and tolls.

According to some plaintiffs involved in the Uber lawsuit, Uber avoids these expenses by identifying as a “technology company,” connecting riders with rides, rather than a “transportation company” that employs drivers.

Uber drivers also alleges that they do not receive the gratuity included in the ride fair, though Uber discourages customers from tipping the driver separately.

In August 2015, an Uber driver was declared to be an employee rather than an independent contractor by the California Labor Commissioner. Since then, Uber has agreed to pay up to $100 million to settle some major class action lawsuits, as well as make several policy changes.

One lead plaintiff in an Uber drivers lawsuit, however, has spoken out against the proposed $100 million settlement.

The plaintiff, Douglas O., claims that the class lead counsel in the Uber drivers lawsuit pressured him into accepting the settlement without explaining the terms of that settlement or noting his right to reject it.

Now, the plaintiff says that had he fully understood the terms, he would have strongly objected to the settlement.

Douglas O. has hired his own lawyers, who have filed a motion to have the class lead counsel kicked off the Uber drivers lawsuit. The lawyers claim that the drivers are being sold around $1 billion short in the Uber lawsuit.

The Uber lawsuit lead counsel, Shannon Liss-Riordan, does not offer satisfactory protection for the Uber drivers involved, the plaintiff claims.

Liss-Riordan responded to the request for disqualification, saying that the plaintiff is just trying to disrupt the settlement. Liss-Riordan said that her proposed settlement was being rejected by the plaintiffs without any substantial support.

This settlement has been nearly three years in the making, but has still left many plaintiffs and lawyers alike dissatisfied.

The settlement deal does not resolve the main issue of the suit, which is determining whether or not Uber drivers would be more appropriately classified as employees or independent contractors according to the law.

If you have worked as an Uber driver and been denied overtime, tips, or any other injury as a result of being classified as an independent contractor, you may be able to file an individual Uber lawsuit or join a wage and hour class action lawsuit.

Join a Free California Uber Driver Class Action Lawsuit Investigation

If you are an California Uber driver, you may be eligible to join a class action lawsuit investigation into claims they you were misclassified as independent contractors. Find out if you qualify.

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