Uber Drivers Are Employees, Not Contractors, Lawsuit Claims

Uber Technologies Inc. claims to be a technology company that uses software to connect passengers with Uber drivers who are independent contractors.

The New York Taxi Workers Alliance and 10 drivers disagree, and have filed a proposed class action lawsuit that accuses Uber of labor law violations.

Independent Contractor vs. Employee

In this latest lawsuit against Uber, the plaintiffs argue that because the company in New York tells the Uber drivers what types of cars to drive, what to wear and when to work, along with other demands, Uber is actually overseeing employees, not independent contractors.

“Uber drivers must strictly follow a litany of very specific company imposed regulations that govern how, when, where and who gets to work, yet Uber enjoys the benefits of misclassifying drivers as ‘independent contractors,’” the plaintiffs said.

New York City drivers accuse Uber of instructing them to buy a Lincoln Town Car in order to pick up higher fare passengers for Uber’s upscale UberBlack service. The company changed its policy rather quickly, excluding the Lincoln Town Cars, which left Uber drivers stuck with unwanted monthly car payments.

Part of the lawsuit alleges that Uber breached its contract with these drivers.

Uber’s alleged employee misclassification allows the company to avoid paying unemployment insurance, workers’ compensation, Social Security, proper wages and other benefits.

Uber also does not have to reimburse its estimated 160,000-plus independent contractors for typical driving expenses such as gas, car maintenance, tolls and insurance. Uber was most recently valued at $60 billion.

Other expenses Uber should have covered but instead required Uber drivers to pay on their own were fines issued for unlicensed operation in the city, car payments, iPhone leases and other costs of doing business as a cab driver in New York, according to the complaint.

Uber Drivers File Other Lawsuits

Uber failed when it tried to convince a U.S. District judge to dismiss an Uber driver class action lawsuit filed in San Francisco.

U.S. District Judge Edward Chen said that Uber “would not be a viable business entity without its drivers…Uber’s revenues do not depend on the distribution of its software, but on the generation of rides by its drivers.”

In another case, the California Labor Commissioner determined that Uber owed one driver more than $4,000 in expenses for her time spent as an Uber driver. The Commissioner concluded that the driver was a victim of employee misclassification and deemed her to be an employee of Uber.

What Can You Do?

Any Uber drivers who feel they have been a victim of employee misclassification could have a legal claim. Labor laws exist to protect employees from being taken advantage of by their employers.

The Uber Employee Misclassification Class Action Lawsuit is New York Taxi Workers Alliance et al. v. Uber Technologies Inc., Case No. 1:16-cv-04098, in the U.S. District Court for the Southern District of New York.

UPDATE: On Dec. 12, 2018, a NYC cab driver class action lawsuit alleging that certain drivers are truly employees of Uber has been settled.

Join a Free Uber Driver Class Action Lawsuit Investigation

If you are an Uber driver who lives in Indiana, Central or Southern Illinois, or Wisconsin, 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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