Are California Uber Drivers Employees of Uber?

A new class action lawsuit investigation is looking into whether California Uber drivers are misclassified as independent contractors.

As many as 300,000 California Uber drivers could stand to gain more compensation and benefits than they’ve already been getting.

By being classified as independent contractors when they supposedly should have been classified as employees, they argue they should be entitled to all the legal protections that employees get under California law.

If California Uber drivers were classified as employees, a whole slew of worker protections could kick in to their benefit. The drivers could benefit from laws guaranteeing a minimum wage, overtime pay and reimbursement for business-related expenses like mileage on their cars.

They could also be eligible for employee benefits like subsidized health insurance, worker’s compensation insurance, and the right to form a driver’s union.

Arguments also remain over the “gratuity” that is supposedly included in the Uber fare amount. Uber allegedly tells its riders that the fare covers gratuity, discouraging them to tip their drivers directly.

But California Uber drivers say they never receive whatever gratuity may included in the fare.

California Uber Drivers Take Sides Over Proposed Settlement

Although Uber proposed a settlement of similar claims from a class of California Uber drivers in April 2016, named plaintiff Douglas O. broke ranks along with a few other plaintiffs to challenge both the terms of the settlement and the advice he got from plaintiff class counsel.

Douglas says the proposed settlement worth as much as $100 million sold many Uber drivers short. He believes the plaintiff class could be entitled to a settlement worth as much as $1 billion.

He also takes issue with the proposed settlement’s failure to designate Uber drivers as employees rather than as independent contractors.

Douglas believes Uber drivers should be classified as employees once and for all. But under the terms of the proposed settlement, Uber would continue to classify drivers as independent contractors.

The company would also set up a “Driver’s Association” that would represent drivers to company management every quarter.

U.S. District Judge Edward Chen, whose approval would be necessary to finalize the settlement, has expressed significant reservations about the proposed settlement’s terms.

Judge Chen is concerned that the settlement eliminates some drivers’ right to bring a future lawsuit and that it forces future claims to go to arbitration.

Uber continues to face multiple similar class action lawsuits around the country. These other claims do not purport to represent California Uber drivers who were already covered by the April 2016 class action lawsuit settlement.

In yet another misclassification class action lawsuit, a federal judge in Pennsylvania recently denied Uber’s motion to send the claim to arbitration.

The judge rejected Uber’s argument that a court order in the California Uber drivers class action lawsuit eliminated the right of drivers in other states to opt out of Uber’s arbitration agreement.

Uber continues to argue that it does not exert enough control over its drivers to give rise to an employer-employee relationship. The company presents itself as a “technology company” that connects riders with drivers, rather than as a transportation company that employs drivers.

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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