A recent ruling by the California Labor Commission has said that drivers working for the ride-sharing service Uber should be classified as employees, not as independent contractors. The Uber labor case decision could mean that independent contractors working for companies, which operate under a similar business model, such as Instacart, may be entitled to company benefits, higher wages, and greater job security. Many new companies in the “on-demand” economy operate under business models that categorize workers as independent contractors instead of employees to keep operating costs very low.
If you work, or anyone you know has worked for Instacart as a delivery driver please contact us at 424-245-5505 or through the form on this page.
Background
Instacart is a relatively new startup company which was founded in San Francisco in 2012. It has reportedly raised almost $220 million in capital for growth and has been valued at nearly $2 billion dollars. Instacart hires shoppers to buy groceries at local stores and then deliver them to customers within a few hours. There are many alleged similarities between Uber and Instacart. For starters, reports say that Uber operates a mobile app, which allows consumers with smartphones to submit a trip request that is routed to Uber drivers who use their privately-owned vehicles to pick up and deliver the customer to his or her destination. It is reported that Uber drivers are required to have a fairly new car, a valid driver’s, and clean driving record. Additionally, drivers must have an insurance policy that covers their vehicle for commercial purposes.
Instacart’s operation and driver requirements are reportedly very similar to Uber. Instacart drivers are allegedly employed as independent contractors and use their own vehicles to deliver groceries from participating chains. Reports have shown that Instacart delivery drivers are required to undergo a comprehensive screening process, which includes a criminal background check and drug screening. Additionally, like Uber, Instacart reportedly utilizes a mobile app that consumers use to purchase items and pay using their credit cards.
Labor Judge’s Ruling
The California Labor Commission said that its ruling is based on the level of control Uber assumes over its drivers. Companies minimize costs by employing people as freelancers who use their own possessions to provide company services, even as they maintain considerable control over workplace behavior. The Commission noted that Uber holds itself out as a “neutral technological platform,” but the reality is that the company is involved in every aspect of the operation. For more on the Commission’s ruling, click here.
Protect Yourself and Those You Love
Lawyers are currently researching class action claims against Instacart in connection with the California Labor Commission ruling. If you work, or know anyone who has worked as an Instacart delivery driver, please contact us. Fill out the form on this page or call 424-245-5505. Contact our attorneys if you have any questions or concerns regarding this investigation.
