Proving the trucking company's liability can be difficult in some cases, however, especially considering that many trucking companies avoid hiring
drivers as employees and treat them as independent contractors instead.
Ms Liss - Riordan did clarify also that the settlement does not prevent court, or US labour bodies, classing Uber
drivers as employees.
«It's a very, very large company that sees itself as a technology company, and therefore provides a platform, but does not view
their drivers as employees,» said Assemblywoman Deborah Glick (D - Manhattan).
Lyft will not have to reclassify
its drivers as employees after reaching a settlement yesterday, in which it agreed to pay $ 12.25 million extra in compensation and benefits.
The companies are researching the benefits and drawbacks of hiring
their drivers as employees, according to a person with direct knowledge of the matter.
Uber cuts prices relentlessly and has fought tooth and nail in court to avoid classifying
its drivers as employees, a status that confers both minimum - wage protection and benefits.
Shannon Liss - Riordan, an attorney for the drivers, acknowledged that the settlement does not achieve a reclassification of
drivers as employees, but said the benefits are still significant.
And two separate legal cases argue that both companies need to start paying
drivers as employees with benefits.
Controversy over whether drivers for the ride - hailing services should classify
drivers as employees or contractors has been a thorn in the startups» sides elsewhere in the country as well, spurring debate in the press and sometimes leading to lawsuits.
However, the ruling to classify a San Francisco - based
driver as an employee instead of an independent contractor could potentially change how sharing - economy companies operate.
Not exact matches
In its complaint, the FTC alleged Uber did not,
as it claimed, monitor
employee access to customer and
driver data.
Under this ruling, however, Uber must treat its
drivers in the U.K.
as employees.
«I don't think you can answer that question [of
employee vs. contractor] looking at the
drivers as a whole,» Seiner said.
Last week, California's Labor Commission ruled that Uber
drivers should be classified
as independent
employees, not
as contractors.
But there's more at stake here: If the company does adopt more rigorous background checks, which could include fingerprinting,
drivers seeking classification
as employees could try to use the move
as evidence they are indeed
employees and not private contractors, says one labor attorney.
Controversies surrounding Uber tend to fall into two different categories: either horror stories of lapses in rider safety or the debate over whether the company's
drivers should be considered
employees as opposed to private contractors.
Delaney, who represents employers in labor arbitrations, says that while fingerprinting wouldn't necesarily provide enough fodder to nudge
drivers into classifications
as employees, she imagines it's an idea that has crossed the minds of Uber's legal team.
A California Supreme Court ruling on Monday will make it easier for workers in the gig economy, like Uber
drivers or TaskRabbit gofers, to claim they are
employees as opposed to independent contractors.
Drivers for both companies are currently classified
as contractors, but the ones who have brought lawsuits against both companies contend they're misclassified and should actually be considered W - 2
employees, a status that would grant more workplace protections.
Imagine a company like Uber, which thrives on a contractor model, having suddenly to bring in all its
drivers as full - time
employees (which several states are pushing).
These
drivers could be reclassified
as employees of the company, rather than independent contractors, if the lawsuit prevails.
That same study found 75 % of CEOs see collaboration
as a major
driver of
employee success.
Sometimes, Uber doesn't get its way,
as happened when the California Labor Commission's Office ruled that a
driver who had sued the company be treated
as an
employee as opposed to
as an independent contractor.
Coming soon: «safe driving system» technology to keep track of your business's
employee -
drivers,
as well
as that teen in the family car.
Letting
employees guide their own work is one of the best ways to,
as Einar Westerlund puts it, «capture their hearts and minds» — a significant
driver of engagement.
Uber
drivers in the richest countries also generally fall into this category but,
as owners rather than
employees, they are relatively better off than those in countries like Pakistan and India.
Uber's claim is that, while Liss - Riordan's clients may want
employee status, at least 400 fellow
drivers do not and therefore, they shouldn't be treated
as a class.
A potentially devastating lawsuit against ride - hailing company Uber over its classification of
drivers as contractors instead of
employees is entering an important phase: determining whether
drivers can sue together through a class action.
This is the latest development in the fight for
drivers of ridesharing apps to be classified
as employees rather than independent contractors.
Many startups, like Uber and Lyft, have brought on their
drivers or workers
as independent contractors, or more generally known
as 1099
employees because of the 1099 form they fill out for the IRS.
Some
drivers of those companies argue they've been misclassified
as independent contractors and want full
employee status.
Under the agreement, which many describe
as a sweetheart deal for the highly valued ride - sharing company, Uber
drivers still aren't considered
employees.
The statement from attorney Shannon Liss - Riordan, says the settlement will allow Uber to continue recognizing those
drivers as independent contractors, not
employees, and pay $ 100 million.
Ride - hailing company Lyft is set to finally settle a two - year - old lawsuit over its classification of its
drivers as contract workers instead of
employees.
In the lawsuit, the
drivers alleged that because Lyft has misclassified them
as contract workers instead of
employees, it owes them reimbursement for expenses like gas and car maintenance.
Earlier this year, U.S. District Judge Edward Chen in San Francisco said California
drivers could sue
as a group on the question of whether they are
employees or contractors, and over their demand for payment of tips that were not passed on to them.
The news of Greyball comes
as Uber struggles with several company mishaps and controversies, including allegations of sexual harassment by a former
employee and co-founder Travis Kalanick's outburst at one of the company's
drivers.
Like Luxe Valet, who also made the switch recently, Sprig originally had its
drivers as W2
employees, Biyani said.
This group of Uber
employees flew into Miami for 10 days in part for a work retreat, and in part to act
as a kind of advance squad, whose duties include networking with hospitality workers, scouting venues, and recruiting Miami Uber
drivers.
Florida officials made a similar ruling in May, while courts in five other states classified
drivers as contract
employees.
For example, in California, certain types of delivery
drivers, salespeople, and construction workers are designated
as statutory
employees, regardless of their classification
as an
employee or independent contractor and are therefore eligible for unemployment insurance.
SAN FRANCISCO (Reuters)- A lawsuit filed by
drivers against ride service Uber should not proceed
as a class action, the company argued in a court filing on Thursday, citing written statements of support from hundreds of other Uber
drivers in a case that could decide whether they are independent contractors or
employees.
Meanwhile, just last month the New York State Department of Labor announced that it had awarded unemployment benefits to two Uber
drivers after finding that they were actually
employees rather than independent workers,
as all
drivers who use the platform to find customers are classified.
In the ruling on Tuesday, U.S. District Judge Edward Chen in San Francisco said California
drivers could sue
as a group on the question of whether they are
employees or contractors, and over their demand for payment of tips that were not passed on to them.
Findings from the SHRM / Globoforce
Employee Recognition Survey:
Employee Experience
as a Business
Driver
On Tuesday, after Bloomberg published a video showing Mr. Kalanick arguing with an Uber
driver over the company's prices, Mr. Kalanick sent an apology to his
employees: «It's clear this video is a reflection of me — and the criticism we've received is a stark reminder that I must fundamentally change
as a leader and grow up,» he wrote.
In April, Uber also agreed to settle a complaint in California and Massachusetts for $ 100 million with
drivers who wish to be deemed
employees with benefits
as opposed to being considered independent contractors.
It also faces other urgent tasks, such
as replenishing its top ranks, retaining its 14,000 full - time
employees, reforming its workplace and repairing its sometimes fractious relationship with its
drivers, who are contractors.
Hours after the video became public, Mr. Kalanick delivered an apology in the form of an email to
employees addressing Mr. Kamel, «
as well
as the
driver and rider community, and to the Uber team.»
In a ruling that fuels a long - simmering debate over some of Silicon Valley's fastest - growing technology companies and the work they are creating, the California Labor Commissioner's Office said that a
driver for the ride - hailing service Uber should be classified
as an
employee, not an independent contractor.