Posted on 06/17/2015 8:49:00 AM PDT by Theoria
A San Francisco-based driver for smartphone-based ride-hailing service Uber is an employee, not a contractor, according to a ruling by the California Labor Commission.
The ruling, filed on Tuesday in state court in San Francisco, said Uber is "involved in every aspect of the operation." It is the latest in a host of legal and regulatory challenges facing Uber in the United States and other countries.
Uber had argued its drivers are independent contractors, not employees, and that it is "nothing more than a neutral technology platform."
If Uber drivers are employees, that opens Uber up to higher costs, including Social Security, workers’ compensation and unemployment insurance. That could affect its valuation, currently above $40 billion, and the valuation of other companies that rely on large networks of individuals to provide rides, clean houses and other services.
But the commission said Uber controls the tools driver use, monitors their approval ratings and terminates their access to the system if their ratings fall below 4.6 stars.
Uber did not immediately respond to a request for comment.
The commission was ruling on an appeal by Uber of a labor commissioner's award of about $4,000 in expenses to San Francisco-based driver Barbara Ann Berwick, who filed her claim in September. She worked as an Uber driver for just over two months last year.
Earlier this month, Uber lost a bid to force arbitration in a federal lawsuit brought in San Francisco by its drivers. Earlier this year, the same court rejected Uber's bid to deem its drivers independent contractors, saying a jury would rule on their status.
(Excerpt) Read more at reuters.com ...
They mostly hung around baggage claim (darting in and out quickly to avoid the parking nazis) at LGA or JFK, white kids in their 20s with medium length greasy hair announcing "Anyone need any help with their bags?"
This was a signal to make a quick deal. Their fare to midtown Manhattan was typically $20 less than a typical taxi, even more savings if you shared a ride. They would even write you out a receipt if asked.
Their cars were nothing fancy, but roadworthy, full size, fairly late models, with the typical number of dents of any private car in New York.
I never saw them actually picking up people in New York going to one of the airports, though my business colleagues told me it could be arranged. I liked using them, not only for the money saved, but because they spoke English, and I was giving work to a local kid.
I drove a cab when I was in school.
I was NEVER an employee. I “leased” the car per shift that came with dispatcher service. No taxes taken out of my pay.
The medallion system has a certain evil logic to it,
IF one assumes all the gub-mint intrusions.
A few cabs? set the rates, set the insurance set the terms etc and then TAX the patookies out of ‘em cuz you know where the money is.
Lots of ‘un-regulated” (meaning a free market) cabs?
The money is widely dispersed, too many voices, too many circumstances the gub-mint can’t control, and thus can’t TAX.
“San Francisco and the State of California are desperate, truly desperate, for money. This is what is behind this whole thing.”
Yeah, now they are charging a “lumber fee” on every board you purchase and a “paint fee” on every can of paint. Their thirst for the money of the productive folks is endless. So rather than “praying” for California to drop off into the Pacific or some other equally nonsensical and useless comment, how about “praying” for California to finally go bankrupt? Because you know there are millions of us here who don’t like our government any more than you all claim. And how about shutting up about all of us moving out, that’s equally stupid for a lot of people whose lives are invested here. At 74 I’m not about to sell two homes and a business and move, leaving my kids and their families behind.
Hubby just started driving for them, I hope “society” doesn’t mess this up for us.
He’s had 1 good day and 3 meh days, but he’s an old duffer and nothing else is panning out.
Hubby is a GREAT driver, with millions of miles under his belt.
WE NEED THIS TO WORK, I cannot even begin to tell you how much.
Uber drivers carry no cash and do not process the payments at all, so it’s very safe for the driver in that respect. It’s all done via the app, using your credit or debit or heck EBT card.
“unlicensed cabs thrive.”
When we first live in Jersey City I used to take illegal livery from the supermarket to my house.
The drivers were black guys, I can’t recall if they were Americans or immigrants. And a few times I questioned my actions, getting in cars with strange men and my kid.
But you know, I never had a problem. They’d even help you with the bags.
I remember my “cloth coat” republican mother telling me she it sounded like a great system!
I HATE working with Minnesota taxi drivers with passion...every one has a major chip on their shoulder and very stinky taxi cabs.
Everyone I’ve worked with from Uber has been very professional and friendly, and has driven inside clean vehicles.
I’m really on Uber’s side in this one.
Per my daughter a lot of her friends will ONLY take uber. She is in the DC metro area and I guess it is big down there. Hubby’s really had no problem getting work, it’s just that you’ve got to be in a sweet spot (surge pricing per uber lingo) to really make $$$.
But, for real, he’s been on a bunch of interviews and nothing has worked before this.
He’s also in line to drive for a company that wants to be like an uber of delivery vehicles, but that hasn’t gotten started yet.
Fingers crossed, trying to piece it together in Obama’s post-Sandy America.
Someone was not getting their cut, so poof, no uber for you!
Just reinforces the idea that the ONLY thing worth doing in kalifornia is recreation. No business, stay out of government, and living there puts one at risk of absorbing the progressive, granola bs.
Got out of that state like a scalded cat in 75!
Shame what it has become.
KYPD
In contrast, in Texas they are working on legislation to ensure Uber can keep doing business here!
They’re determined to take Uber out and this could do it.
“Hubby just started driving for them, I hope “society” doesn’t mess this up for us.”
Don’t worry about society- instead keep an eye on what’s happening in high technology. Uber has been investing in driverless cars and has partnered with Carnegie Mellon University to research and develop them, just like Google and Apple and a host of other tech firms.
” Uber has recruited robotic researchers from Carnegie Mellon in order to staff a research facility. The facility, to be situated in Pittsburgh is designed to… you guess it, build driverless cars.
“After TechCrunch broke the news, Uber released a blog post confirming the news. In Uber parlance, the center is a “partnership” between Carnegie Mellon and Uber. The subtext is that it’s a way for Uber to limit its reliance on anyone – especially drivers – Uber’s CEO Travis Kalanick has long said that the fact that Uber needs drivers is a temporary annoyance. Drivers take 80% of every transaction that Uber processes – removing them is a very attractive revenue stream. Kalanick has admitted as such, telling a conference recently that:
’ The reason Uber could be expensive is because you’re not just paying for the car—you’re paying for the other dude in the car. When there’s no other dude in the car, the cost of taking an Uber anywhere becomes cheaper than owning a vehicle.
“As for the human cost… well, Kalanick has never worried too much about that. According to Uber’s chief product offiver, Jeff Holden, Uber has:
‘the unique opportunity to invest in leading edge technologies to enable the safe and efficient movement of people and things at giant scale. This collaboration and the creation of the Uber Advanced Technologies Center represent an important investment in building for the long term of Uber.
“Clearly driverless cars are the future. And “Uber-like” approaches are the future as well. But there is significant tension that will occur in the process – this Google/Uber upset is an example of that.
I think Uber was kicked out here in San Antonio. There are talks for them to return.
Yeah, there’s that too.
The transportation lobby wants its monopoly, and they will continue to buy judges and politicians too keep it that way.
Sheesh, will these serfs learn their lesson already?
And they make 50 - 60 bucks an hour? Wow, how much does the driver pay Uber? I guess the driver drives his own car? Yeah then I guess it wouldn’t pay that much if you had to lay out for gas.
No cash. Uber is all on the phone and credit card.
KYPD
I'd venture that like the unlicensed white guys who pick up fares at JFK and LGA, they didn't own their livery vehicles either. As I recall, their receipts mentioned some type of shuttle service. Or maybe it was valet parking.
Of course, signs around LGA and JFK warned you not to use these drivers because they might not carry proper insurance, yada, yada, yada.
That's bullcrap because any car on the road has to carry insurance. The cops would love an excuse to impound one for no insurance just as they would love to have an excuse to do so for parking too long curbside at the airport.
The fact is that unlicensed and illegal services thrive best in localities where the socialist ruling class has made it too difficult and/or expensive to operate with a license.
We are still waiting to see how this pans out, so I can’t give you an hourly rate. The driver drives his own car, yes, but I think Uber (or I guess the passenger) covers any tolls. In general, the driver gets 80% of the fare, but most of hubby’s fares have been in the $8.00 range
We need this to work GrandJediMasterYoda, so please, encourage the force to work for us!
I’m going to bet on Uber. They have survived so far, starting in San Francisco, up against plenty of entrenched hostile forces.
They have expanded to all over the globe, and have shown a knack for “problem solving” by coming up with solutions.
That has involved innovation and working with local political environments.
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