Despite the recent proposed multi-million dollar settlement, California Uber X drivers still contend that the ride-hailing company should re-classify drivers as employees instead of independent contractors under California labor law.

What is an Uber X Driver?

Uber X is the most basic private car service that Uber offers – also Uber’s lowest-cost option.  Recently, Uber drivers were given the green light to pick up and drop off at certain airports including LAX.

California Uber X drivers are classified as independent contractors and therefore do not receive health insurance or benefits that a regular employee would.

Also, it is worth noting that California Uber X drivers, unlike a traditional taxi cab driver, are never reimbursed for expenses, including gasoline and insurance costs.

Are Uber X Drivers Misclassified?

There are estimated to be over 300,000 Uber drivers in California, all of whom the company classifies as independent contractors.

In recent years, thousands of Uber drivers have filed lawsuits against the company alleging that they have been incorrectly classified as independent contractors instead of employees.

These Uber class action lawsuits have called into question the ride service company’s business model, which heavily relies on the ability to utilize independent contractors, often considered “1099 employees” for the tax form they complete.

In 2013, a class action lawsuit was filed on behalf of Uber drivers in California and Massachusetts arguing that they should be classified as employees and be entitled to the kind of pay and benefits that regular employees receive, including mileage and tip reimbursement.

Currently, this class action lawsuit is pending approval for a historic $100 million settlement. The settlement, which maintains Uber drivers’ independent contractor status, has been controversial among California Uber X drivers.

Those who wish to opt out of the Uber class action lawsuit or who are not included in the class may proceed with arbitration, an alternative method for settling disputes that does not involve a judge or jury.

California Labor Laws

Under California Labor Laws, independent contractors are not subject to a variety of employment laws that are meant to help protect the rights of employees, such as wage and hour laws, workers’ compensation and unemployment benefits and anti-discrimination laws.

By misclassifying workers as independent contractors instead of as employees, many employers can avoid the high costs of paying benefits and taxes on employees.

In California, they can also avoid reimbursing workers for work-related expenses, such as gas for California Uber X drivers.

Misclassifying workers as independent contractors can carry steep fines and penalties under federal and California labor laws.

California Uber X Drivers Class Action Lawsuit Investigation

Attorneys are currently investigating claims on behalf of California Uber X drivers who may have been incorrectly classified as independent contractors rather than as employees of the company.

By misclassifying employees, Uber has been able to avoid paying certain taxes and covering expenses like gas and workers’ compensation, forcing the drivers to cover these costs on their own.

If you are, or have been, an Uber X driver in California, contact an experienced California Uber X drivers misclassification attorney to learn more about your legal rights. You may be entitled to unpaid wages, reimbursements for mileage and other costs.