Uber Class Action Challenges ‘Gig Economy’

A new class action lawsuit against Uber may force the ride-share company to classify its drivers as full-time employees instead of their current designation as independent contractors.

If this Uber class action lawsuit is successful, it may change the outlook of the “gig economy,” that is the latest job trend wherein individuals are self-employed and take on individual jobs instead of the working for one company full time.

Background on Uber Class Action Lawsuit

On Sept. 1, a California federal judge granted Uber drivers class action status, which has made the way for thousands of California employees to pursue a class action lawsuit against the driving company, claiming they should be classified as full-time employees.

Furthermore, the legal counsel representing the three Uber drivers who are serving as plaintiffs in this California Uber class action lawsuit have made the case that Uber drivers should be entitled to tips and expenses as part of their compensation.

This case is expected to go to trial sometime during 2016.

The Uber class action lawsuit alleges that Uber purposefully misclassifies its drivers as contract workers, even though they perform all the same responsibilities and duties as full time employees, meaning that they should be entitled to certain employee benefits.

These benefits include health insurance, worker’s compensation, and paid leave; however, under their current classification as contractors, Uber drivers do not qualify for these benefits.

The ride-share company is planning to appeal the judge’s decision to certify the Class of drivers.

If the outcome of the class action lawsuit results in Uber being required to hire drivers as full-time employees, the ride-share company will be forced to do things just like any other transportation company, including scheduling and other human resources responsibilities that Uber has thus far been able to avoid.

Early estimates show that it will cost Uber at least $200 million to convert California Uber drivers from contractors to full-time employees.

Individual Uber Litigation

Although there are 160,000 who have at one point or time been employed as Uber drivers in the state of California since 2009, only some of these individuals are eligible to take part in this Uber class action lawsuit.

The presiding federal judge excluded California drivers who were employed though a third-party transportation company, or who began driving for Uber after June 2014.

From the point forward, Uber included an arbitration clause in its drivers’ employment contracts. Therefore, it has been estimated that only 15,000 Uber drivers are entitled to be Class Members in this labor class action lawsuit.

If you drove for Uber in the state of California, you may have been misclassified as an independent contractor or contract worker, and you may be entitled to compensation under state law.

Also, based on the ruling mentioned above, you may not be eligible to take part in the ongoing Uber class action lawsuit. If so, you should consider filing an individual Uber lawsuit.

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

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