In courts around the country, independent contractors are taking on transportation tech giant Uber over employee rights for Uber drivers.

Since the company started in 2009, Uber drivers have been classified as independent contractors.

Uber drivers were seen as their own bosses, able to create their own schedules and pick up fares as they wished.

In recent years, perception has changed as Uber drivers have realized what they are losing by being classified as independent contractors.

As employees, Uber drivers would be entitled to a great number of benefits that are currently denied them.

As independent contractors, Uber drivers are not covered by protections of wage and hour laws, including the right to earn minimum wage, overtime pay, meal breaks, and reimbursement for business expenses.

Employee rights for Uber drivers would include coverage under anti-discrimination laws to protect them from discrimination and harassment.

As employees, Uber drivers would be able to see their paychecks include payroll withholdings for state, federal and Social Security. They would also be eligible for workers’ compensation and unemployment benefits.

Uber has become a $60 billion company. All the while, it has not paid for employee rights for Uber drivers, its drivers have been denied the above-mentioned benefits and the company has avoided paying millions of dollars in taxes and benefits.

California’s Way to Determine Employee Rights for Uber Drivers

Whether or not an employee is classified as an independent contractor varies from state to state.

So far, several states have ruled in favor of Uber’s claim that there are no employee rights for Uber drivers.

However, California law is very different than that of most states. In the Golden State, employee classification depends upon the degree of control the company has over the employee. An independent contractor is under little control by the company.

In one recent case, the California Labor Commissioner determined that Uber owed driver Barbara B. more than $4,000 in expenses for her time spent as an Uber driver. The Commissioner concluded that the driver was an employee of Uber, making this a victory for those seeking employee rights for Uber drivers.

The ridesharing company is appealing that decision because it claims to have little control over its drivers. California Uber drivers disagree, saying Uber assumes control over the drivers as well as supervision.

Determining Employee Classifications in California

When the Labor Commissioner determined Barbara B. was an employee and not an independent contractor, he used the economic realities test that the California Supreme Court adopted in the S.G. Borello & Sons, Inc. v. Department of Industrial Relations decision.

The test results in Barbara B.’s case did not determine employee rights for Uber drivers in general, but it did determine that Barbara B. was an employee.

One of the determining factors in this case was that drivers were involved in the main business of Uber.

In addition, Uber  provided their drivers with iPhones and monitored their drivers’ approval ratings. If a driver was inactive for 180 days or the driver’s approval ratings went below 4.6 starts, Uber released the driver.

The transportation giant also was found to completely control the prices that drivers would charge their passengers. The commissioner also noted that driving people around is not a special skill.

Uber insisted that drivers set their own hours, can refuse customers and are not supervised while driving, all which enforces the independent contractor classification.

The Labor Commissioner disagreed, saying that detailed control was not necessary to provide the level of control needed to prove the employee relationship.

This case has not settled the independent contractor or employee question for all Uber drivers, but it did ensure employee rights for one Uber driver.