California Uber contractors may actually be employees rather than independent contractors under California law, drivers argue in wage and hour lawsuits, entitling them to benefits they do not currently have as contractors.
Uber, a popular on-demand ride service which has grown rapidly in major metropolitan areas, employs over 300,000 drivers in California alone.
While Uber is a relatively new company, founded in 2009, it was recently valued at just over $60 billion.
The company classifies its drivers as independent contractors, but these California Uber contractors are saying that they are being purposely misclassified so that Uber can avoid paying a number of expensive employee expenses, including essential benefits.
By classifying those who should be considered employees as California Uber contractors, the company can avoid paying unemployment insurance, Social Security, workers’ compensation, and other benefits.
California Uber contractors are also expected to use their own money to pay for a variety of work-related expenses, such as gas, car maintenance and tolls.
These expenses would be covered by the company if the drivers were classified as employees instead of California Uber contractors.
Some of the California Uber contractors involved in these lawsuits have also claimed that Uber denies drivers their tips.
Uber allegedly does this by adding gratuity to the ride fair, but not passing it on to the drivers. Uber also allegedly discourages its customers from tipping the driver on top of the included gratuity.
Some Uber lawsuits allege that the company avoids classifying its drivers as employees by self-identifying as a “technology company,” or an app that connects riders with rides and hires independent contractors to provide those rides, rather than a “transportation company” that directly employs drivers.
Lawsuits over misclassification of California Uber contractors have set a positive precedent.
In August 2015, the California Labor Commissioner declared regarding one lawsuit that one driver had been misclassified as a California Uber contractor rather than an employee.
This precedent has led to Uber settling a number of major class action lawsuits, as well as several major policy changes.
The lead plaintiff in one California Uber contractor class action lawsuit, the subject of a proposed $100 million settlement, has spoken out against the proposal.
The plaintiff, Douglas O., claims that the class lead counsel, Shannon Liss-Riordan, pressured him into accepting the settlement without properly explaining the settlement’s terms or even his right to reject it.
Now, after hiring how own lawyers, the plaintiff claims that with full understanding of the terms, he would have strongly objected to the settlement. His lawyers have filed a motion for Liss-Riordan to be kicked off the California Uber contractor lawsuit altogether.
Why is the lead plaintiff now so dissatisfied with the terms of this proposed $100 million lawsuit? His lawyers claim that the drivers are being sold short in the settlement—by about $1 billion.
If you have worked as a California Uber contractor and been denied overtime, tips, expenses, or any other injury as a result of being classified as an independent contractor instead of an employee, you may be able to file a lawsuit or join a class action lawsuit.
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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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