The California Labor Commission has issued a ruling in favor (PDF) of a former Uber employee, ordering the company to reimburse her for costs incurred while driving for Uber. The Commission's decision says that Uber is liable for these costs because its drivers are employees of the company, something that Uber has been battling to disprove in several courts around the country. As employees, Uber drivers in the state would qualify for minimum wage, overtime, and worker’s compensation. Uber has maintained that its drivers are independent contractors.
The Labor Commission issued its ruling in favor of Barbara Ann Berwick, a former Uber driver who sued Uber in San Francisco Superior Court. Uber and other companies like Lyft and Homejoy, which seek to connect people offering services with people seeking services through an app platform, have seen an influx of lawsuits from employees and former employees, accusing the companies of keeping their margins low by passing the costs of running their business onto “contractors” who often pay for car insurance, gas, and maintenance out-of-pocket.
The Commission ordered Uber to pay Berwick $4,152 in reimbursable business expenses and interest. While that’s not a lot in this particular instance, the award sets a precedent that could threaten Uber's bottom line. Uber, a company with a multi-billion-dollar valuation, is appealing the decision.
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