Are Uber Independent Contractors Misclassified?

Some seasoned Uber drivers think that their job is the best in the world. They appreciate setting their own hours, meeting new people, enjoy providing a needed service and like being their own boss.

However, other Uber drivers feel that their classification as Uber independent contractors has left them without the benefits they believe they should be entitled to as an Uber employee.

As word has gotten out challenging the classification of drivers as Uber independent contractors, even those who have previously loved their job with the company are starting to question if they are being taken advantage of.

Are Uber Independent Contractors Misclassified?

Currently, Uber drivers are considered independent contractors and are not employees of Uber.

Uber states that it is a “technology company” that provides the service of connecting riders with drivers rather than a “transportation company” that employs drivers as part of their business model.

Uber independent contractors have signed agreements with Uber stating that they are independent contractors and receive 1099 forms for tax purposes.

However, court rulings have determined that signing independent contractor agreements and receiving 1099 forms for tax purposes alone does not automatically mean that a person is an independent contractor.

In California, a number of factors determine if a worker is classified as an independent contractor or as an employee. In general, the amount of control over the worker is the main determining factor in a worker’s status as an independent contractor or as an employee.

According to the California Department of Industrial Relations website, an “economic realities” test is performed.

“In applying the economic realities test, the most significant factor to be considered is whether the person to whom the service is rendered (the employer or principal) has control or the right to control the worker both as to the work done and the manner and means in which it was performed,” the website states.

Additional factors are also considered to assist in determining employee status and include things like the length of time the service will be performed, how the worker is paid – either by job or by time, how permanent the working relationship is and more.

Uber Independent Contractors Versus Uber Employee Status

Why might a company like Uber choose to classify their drivers as Uber independent contractors rather than Uber employees? Essentially, the answer comes down to the company’s monetary bottom line.

With more than 300,000 drivers in California alone, Uber has successfully avoided paying drivers as employees and has been able to keep more of its own profits by not paying the following:

• Fair wages
• Overtime pay
• Social Security benefits
• Unemployment insurance
• Workers’ compensation
• Health insurance
• Reimbursement of on-the-job expenses such as car maintenance, gas, car insurance, tolls and related fees
• Other employee benefits

Uber Independent Contractors Lawsuit Information

Several class action lawsuits have already been filed by Uber drivers challenging their classification as Uber independent contractors.

The lawsuits allege that Uber purposely misclassified its drivers as Uber independent contractors in an attempt to get around labor laws.

As a result, the Uber drivers claim that they were not paid fair wages, were shorted overtime pay and did not receive benefits afforded to traditional employees such as Social Security benefits, unemployment insurance, workers’ compensation, health insurance, reimbursement for on-the-job expenses and more.

Additionally, plaintiffs in these class action lawsuits against Uber claim that the company sets a fare for consumers that Uber states includes a tip. However, the drivers state that the gratuity included in the Uber fare is not paid directly to drivers.

If you are a California driver and believe you are misclassified as an Uber independent contractor, you may be eligible to join a class action lawsuit. An experienced attorney can review your case for free and can help you decide if joining in Uber independent contractors class action lawsuit is right for you.

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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