Uber Driver Misclassification and Other Common Gig Economy Problems

Gig economy jobs are becoming more and more prevalent. However, with the rise of the gig economy, there have been a few significant problems with these types of jobs, like Uber driver and other gig economy worker misclassification.

It’s beneficial to companies to work with independent contractors, as it allows them to avoid paying costs like worker’s compensation plans, overtime wages, and more. Temporary gig workers also typically do not require the same kind of traditional onboarding and training that long-term employees require, nor do companies put the same efforts into training and retention of these workers.

Since gig economy work has become increasingly common, the understanding of the very nature of these jobs has shifted. These jobs are typically thought of as both temporary as flexible, which to some minds may make these seem undervalued or insignificant in the larger scope of the economy.

But now, a huge number of people in your daily life—from your Uber driver to your dog walker to your food delivery courier—are part of this gig economy system. In fact, this type of work has become prevalent to such a degree that now it is somewhat difficult to imagine life without them.

The Downside for Workers

Unfortunately, some companies may be underestimating these workers. Indeed, some experts have estimated that freelancers in the gig economy will soon comprise above 40 percent of the American workforce.

Some may also assume that the gig economy is full of only unskilled laborers. But in fact, there are many professionals who are part of this system, from massage therapists to attorneys to doctors.

Companies may also misclassify their gig economy workers as independent contractors rather than employees. Defining an “independent contractor” isn’t a simple process, as differing definitions exist according to different jurisdictions and federal statutes, as well as state and local agencies.

But being misclassified as an independent contractor is a big deal for those it affects. This can mean that they are not eligible for overtime wages and other basic workers’ benefits that employees enjoy.

In California, companies who misclassify their gig economy workers can be held accountable under state wage and hour laws. The state legislature passed Assembly Bill 5 earlier in 2019, which established a three-part test to determine the correct classification of a worker. In order to be considered an independent contractor, a worker:

• Must be free from the control and direction of the company;
• Performs work that is outside the usual course of the company’s business and
• Customarily engages in an independently established trade, occupation, or business that is of the same nature as the work performed

Filing an Uber Driver Misclassification Lawsuit

If you currently work or have worked as an Uber driver or Lyft driver, you may have been misclassified as an independent contractor instead of an employee, and you may therefore be entitled to compensation.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free Uber & Lyft Class Action Lawsuit Investigation

If you work as a Lyft or Uber driver in California, you may have been misclassified as an independent contractor, and you may qualify to join this California independent contractor class action lawsuit investigation.

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