Should Uber Drivers Have Access to Uber Health Insurance Plans?

As the battle for worker protections in the on-demand gig economy ensues, the issue of whether independently contracted Uber drivers should have the same health insurance plan and other benefits as Uber employees is under debate.

Uber currently classifies its drivers as independent contractors, rather than employees. But this classification also allows Uber to avoid expenses, including health insurance that companies usually have to pay to employ workers.

Adding fuel to the fire, Uber recently announced a $100 million settlement, in an attempt to bring a close to a hotly contended class action lawsuit over whether Uber drivers should be reclassified as employees.

In the Uber class action lawsuit, three Uber drivers collectively challenged the company on whether they should be considered employees under the law instead of independent contractors, as the company now classifies them.

Uber agreed to pay up to $100 million to the 385,000 drivers, but under the deal their employment status as independent contractors will not change. Uber, which is valued at up to $70 billion, is on the hook for a $84 million initial payment, and another $16 million if the ride-sharing company goes public.

“Many drivers have included on their list of issues that they are on their own for health insurance,” said Shannon Liss-Riordan, the lead plaintiff attorney in the Uber class action lawsuit. “These drivers are left in the cold.”

So, Uber walks away with two major victories: Drivers remain classified as independent contractors, not employees. Independent contractors are cheaper to hire, and unlike employees, companies are not required to provide them with benefits like overtime and health insurance.

Another bonus for Uber is, by not offering and paying for health insurance, they have a competitive business advantage since health insurance can be a significant cost to businesses

Can Uber Avoid Paying Health Insurance?

As independent contractors, Uber drivers are not eligible for benefits, including health insurance.

Many critics say that Uber and other similar companies use strategic wording and questionable tactics to avoid providing health insurance under the Affordable Care Act (known as ObamaCare).

Because Uber considers their workers independent contractors instead of employees, the company claims that under ObamaCare, they are not required to provide these workers with health insurance, since ObamaCare only mandates that employers extend coverage to full-time employees. That loophole saves Uber a tremendous amount of money.

However, ObamaCare’s “employer mandate” requires that all businesses with 50 or more full-time equivalent employees provide health insurance to at least 95 percent of their full-time employees and dependents up to age 26, or pay a penalty.

Under the mandate, employees are classified as full time if they work more than 30 hours per week or 130 hours per month for more than three months. A 2015 report revealed that there are about 32,000 full-time Uber employees.

Protecting Uber Drivers

Protections for workers in the ride-sharing economy has become a contentious issue. An investigation has been launched into Uber’s employee health insurance plan, focusing on how Uber’s current health insurance system works for office employees and whether or not it should apply to independent contractors.

If you are an Uber employee, not a driver, and you believe Uber drivers should be included in the same health insurance plan that Uber employees are under, you can help their cause by confidentially providing a copy of Uber’s employee health insurance plan to the attorneys investigating this matter.

Follow the link below and fill out the form for more information on how you can help.

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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