Uber drivers are employees, not contractors: California Labor Commission

Reuters ^ | 17 June 2015 | Sarah McBride and Dan Levine

[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.

[fuzzylogic]

Yep, Uber destroys the legacy Taxi business and it cannot be tolerated!!

I used Uber from San Fran airport to downtown - about half hour....$15 !!!!!!

So of course Cali needs to destroy it.

[Organic Panic]

Uber drivers are employees, not contractors WE WANT OUR CUT!!!: California Labor Commission

Fixed it.

[Graybeard58]

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.

You said it well. Living in Illinois, I have heard from the, "why don't you just move" crowd, many times.

I'm not a Gypsy but a property owner with kids, grand kids and even great grand kids in the area.

[vbmoneyspender]

I don’t think cabbies or uberies should be considered employees but this is California and the bureaucrats here will try to screw up anything and everything if they can.

[cicero2k]

The number I remember was $9.50 per hour to driver, average, net of Uber, personal vehicle costs.

Lots of time can be consumed driving to the pick up point, especially in traffic. That time has to be averaged out.

It’s hard to think of them as employees.

[SamAdams76]

Basically if the fare is $50, the driver gets $40 and Uber gets $10.

Then the driver can get tipped on top of that.