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posted by Fnord666 on Sunday April 15 2018, @08:16PM   Printer-friendly
from the independent-employees dept.

A U.S. judge in Philadelphia has ruled that limousine drivers for Uber Technologies Inc [UBER.UL] are independent contractors and not the company’s employees under federal law, the first ruling of its kind on a crucial issue for the ride-hailing company.

U.S. District Judge Michael Baylson on Wednesday said San Francisco-based 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 Philadelphia-based 3rd U.S. 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.

[...] The case is Razak v. Uber Technologies Inc, U.S. District Court for the Eastern District of Pennsylvania, No. 2:16-cv-00573.


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  • (Score: 1, Interesting) by Anonymous Coward on Monday April 16 2018, @06:46AM (2 children)

    by Anonymous Coward on Monday April 16 2018, @06:46AM (#667535)

    The drivers work when they want to and are free to nap, run personal errands, or smoke cigarettes in between rides, Baylson said.

    *That* is enough to be classified as an independent contractor in the USA?? Seriously????

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  • (Score: 0) by Anonymous Coward on Monday April 16 2018, @01:18PM (1 child)

    by Anonymous Coward on Monday April 16 2018, @01:18PM (#667610)

    I think so. Basically, an "employee" is renting out his time in pre-arranged blocks: he has to show up at 8AM, and has to work continuously until 5PM, except for a 1-hour lunch break and 2 15-minute breaks, for instance. (Employers can have different start/stop times and policies on lunch, but they have to be consistent, and a certain number of breaks are required by law.) There's no such thing as an "employee" who can just show up whenever he wants, take off whenever he wants, etc., except for "salaried" ("exempt") employees, which drivers are not. Basically, I think you can say this is an artifact of how employment law evolved in this country, mainly coming from factory work in the industrial age.

    The IRS has a bunch of rules about what constitutes an "employee" vs. an "independent contractor": regular hours, having your work closely managed and being required to perform work ordered by your supervisor, etc. The anti-Uber people have largely ignored this because they don't like cab drivers having the competition, but it's true: Uber/Lyft drivers do NOT follow regular hours the way cab drivers do, and they can and frequently do work for both companies, taking passengers from either one (not at the same time though). It simply is not like the way cab drivers work.

    Honestly, what this to me shows is that employment law in this country desperately needs an update, to eliminate the stupid assumption that everyone is a factory worker. It's too easy for employers to get out of having to treat employees a certain way (like providing benefits) by calling them "independent contractors". Flexibility in work is a good thing, but it shouldn't also mean employees get shortchanged compared to employees in other industries where the work is more regular. Of course, one of the really major problems in this country is the idea that health insurance should be a benefit paid (at least partly) by your employer, instead of being something you just get for yourself like car insurance or you get from the government as in single-payer nations.

    • (Score: 0, Disagree) by Anonymous Coward on Monday April 16 2018, @04:49PM

      by Anonymous Coward on Monday April 16 2018, @04:49PM (#667693)

      this whole debate is nonsense. it's obvious as hell when you take a job whether you are an employee or independent contractor. you have to fill out different tax forms. these fucking idiots hired out as contractors and then figured they could sue. people like you whining for more authoritarian regulation are pathetic and dangerous. if you don't think jobs like this are worth a shit or moral then don't fucking contract with these companies! quit trying to make that decision for other people. you just want someone on the chain next to you while you get pulled to hell. if these companies/arrangements are bad, people will eventually figure that out and these companies will go away. Or not, but i'm not going to force my bullshit on you unless you continue to try and corner me with yours. if you don't believe in free market economics gtfo. take your ass to one of the many authoritarian leftist countries all over the world and quit trying to further ruin America.