Uber Driver Class Action
A recent ruling by the California Labor Commission in an Uber lawsuit has said that drivers working for the service Uber should be classified as employees, not as independent contractors. This decision could mean that individuals driving for Uber are entitled to payment for past wages, overtime, breaks, company benefits, higher wages, and greater job security. If you work, or have worked, for Uber as a driver please contact us at 424-245-5505 or through the form on this page.
Information about Uber
Uber was founded as “UberCab” in 2009 by Garrett Camp and Travis Kalanick. The company 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. Drivers are required to have a fairly new car, a valid driver’s license, and clean driving record. Additionally, drivers must have an insurance policy that covers their vehicle for commercial purposes. Uber says drivers can make up to $22 per hour (this wage can vary based on location), but this wage is based on working between 35 and 49 hour per week. Over 62% of Uber drivers work full-time in another job and drive part-time for the company, which means they earn less than full compensation from Uber.
Also, these wages are calculated before the driver’s expenses associated with maintaining a vehicle that will meet Uber’s standards. Among the many differences between Uber and traditional cab services is the fact that Uber drivers do not receive tips. Because Uber advertises a service that is transacted via their mobile app, the customer’s credit card is automatically charged for the ride and the company says there is no need to tip. By the end of 2014, there were more than 160,000 active Uber drivers operating in more than 300 cities across six continents. Uber has collected billions of dollars in venture capital and is estimated to be worth $40 billion.
Labor Commission Ruling
The California Labor Commission said that its ruling is based on the level of control Uber assumes over its drivers. Companies like Uber minimize costs by employing people as freelancers who use their own property 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.
Additionally, Uber has said that the decision of the California Labor Commission only applies to the individual driver who brought the case before the commission. However, the decision has likely opened the door to other similar claims from Uber drivers employed as independent contractors.
Class Action Lawsuit
Lawyers are currently researching class action claims against Uber in connection with the California Labor Commission ruling. If you or anyone you know, has worked as an Uber 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.
