Most people have heard about Uber but may be unfamiliar with the services that the company provides. Uber is a ride sharing services where individuals get paid to use their car to drive other people to various locations. Recently, however, a number of Uber drivers filed a lawsuit against the company in an attempt to be reimbursed for expenses.
Lawsuit Arguments
Currently, the lawsuit is in Federal Court in San Francisco. The Plaintiffs in the lawsuit are trying to get the case to be class-action certified. The Uber drivers who filed the lawsuit state that they are company employees and are entitled to be reimbursed for certain expenses, such as gas and maintenance of their vehicles. Uber, however, states that the drivers are independent contractors that are not entitled to reimbursement.
In addition, the company states that Uber drivers have very little, if anything, in common with one another since they all engage with the company in different methods. Uber also argues that the varying interactions of the drivers means that it would be very difficult for the case to continue as a class-action case. Furthermore, Uber also provided written statements from approximately 400 that support the organization.
However, the Plaintiffs in the case state that there are a large number of Uber drivers who are unhappy with the company. At the same time, the Plaintiffs state that Uber has exercised control, such as terminating their employment, which would qualify the drivers as company employees.
How This Affects Businesses
The argument over classifying individuals as contractors or employees can have consequences for companies. If the workers are considered to be employees of the business, than the company would be forced to pay certain benefits to the workers. In the case of Uber, it would mean that their drivers could be potentially eligible for mileage and/or gas reimbursement as well as money for vehicle maintenance. However, if the drivers are considered to be independent contractors, then Uber would not be liable to pay individuals expenses.
At the same time, determining if the drivers are Uber employees or not could also determine how much control the company may or may not have over the drivers. If the drivers are considered to be employees, then the workers could be forced to have a set schedule that they work. As an independent contractor, however, the drivers could possibly have more flexibility in setting their own hours.
Conclusion
As a business owner, it can be a difficult proposition in determining if a worker is an employee or an independent contractor. If an individual has any questions or is unsure how to handle a similar situation, it can be very beneficial to speak with an attorney. The lawyer can explain the pros and cons of both sides and help to formulate what the best strategy is for the business. In addition, an attorney may be able to explain any potential issues and results if the owner is involved in a similar type of lawsuit.