A type of law change that would benefit Uber would clarify the status of their drivers as independent contractors rather than employees, explains U.S News & World Report. As of 2015, state courts in California and Florida rule that Uber drivers are employees, while other state courts designate them independent contractors. A clarification of the status would prevent multiple lawsuits and save Uber from paying for regular salaries, gas expenses, insurance and employee taxes, adds Business Insider.Continue Reading
Uber presents itself as a technology company that links independent contractors with clients, according to U.S. News & World Report. Although Uber exerts some control to maintain a satisfactory level of service, its drivers own their vehicles, choose the hours they work and are free to also work for other ride-sharing companies, points out Business Insider. Court rulings designating Uber drivers as employees would impact Uber's entire business model and dramatically reduce profits.
In individual and class action lawsuits, Uber drivers argue that the company earns its profits at the expense of workers' benefits and rights, states U.S. News & World Report. Ultimately, the decisions come down to state courts interpreting state labor laws. Rulings involving Uber drivers also have implications for other on-demand companies such as Lyft, Postmates, TaskRabbit and FlyCleaners.Learn more about Law