Uber drivers not co’s employees: US court
TIMES OF INDIA 14..4.2018
A US judge in Philadelphia has ruled that limousine drivers for Uber Technologies Inc are independent contractors and not the company’s employees under federal law, the first ruling of its kind on a crucial issue for the company.
US district Judge Michael Baylson on Wednesday said Uber does not exert enough control over drivers for its limo service, UberBLACK, to be considered their employer under the federal Fair Labor Standards Act. The drivers work when they want to and are free to nap, run personal errands, or smoke cigarettes in between rides, Baylson said.
The legal classification of workers has been a major issue for “gig economy” companies that rely on independent contractors. Uber, in particular, has been hit with dozens of lawsuits in recent years claiming that its drivers are employees and are entitled to minimum wage, overtime, and other legal protections not afforded to contractors. An Uber spokeswoman said the company is pleased with the decision.
Jeremy Abay, a lawyer for the plaintiffs, said he would appeal the ruling to the 3rd US circuit court of appeals. The 3rd circuit would be the first federal appeals court to consider whether Uber drivers are properly classified as independent contractors.
Many of the cases filed against Uber have been sent to arbitration, but the plaintiffs in the this case were among a small minority of drivers who had opted not to sign arbitration agreements with the company. REUTERS
TIMES OF INDIA 14..4.2018
A US judge in Philadelphia has ruled that limousine drivers for Uber Technologies Inc are independent contractors and not the company’s employees under federal law, the first ruling of its kind on a crucial issue for the company.
US district Judge Michael Baylson on Wednesday said Uber does not exert enough control over drivers for its limo service, UberBLACK, to be considered their employer under the federal Fair Labor Standards Act. The drivers work when they want to and are free to nap, run personal errands, or smoke cigarettes in between rides, Baylson said.
The legal classification of workers has been a major issue for “gig economy” companies that rely on independent contractors. Uber, in particular, has been hit with dozens of lawsuits in recent years claiming that its drivers are employees and are entitled to minimum wage, overtime, and other legal protections not afforded to contractors. An Uber spokeswoman said the company is pleased with the decision.
Jeremy Abay, a lawyer for the plaintiffs, said he would appeal the ruling to the 3rd US circuit court of appeals. The 3rd circuit would be the first federal appeals court to consider whether Uber drivers are properly classified as independent contractors.
Many of the cases filed against Uber have been sent to arbitration, but the plaintiffs in the this case were among a small minority of drivers who had opted not to sign arbitration agreements with the company. REUTERS
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