Posted 06/18/2015 at 9:10 AM
Posted 2 years ago
The Labor Commissioner of the state of California has made a ruling that could be a major game-changer for the on-demand car service Uber.
According to a statement regarding the ruling, a driver for Uber Technologies Inc. that connects with customers through the company’s application has to be considered an employee of Uber.
Uber has gone on record in the past as saying that their fleet of livery drivers are considered independent contractors.
This distinction they have made allows them to avoid paying their drivers a minimum wage, as well as guarantee them Social Security benefits and compensation for mileage.
The ruling was filed in court this past Tuesday, with its origins in a wage dispute filed by one driver.
As it stands, the ruling affects the original individual complaint.
But if Uber were to appeal, the ruling could extend to all 26,000 drivers within the state and drastically change their infrastructure.
This represents the latest battle for Uber in terms of their practices – while five other states have ruled in their favor, California makes the second state after a decision in Florida to find that drivers with Uber are employees.