Uber Contractor Agreement
Given these risks, companies should carefully consider whether they wish to classify their workers as independent contractors. There is no risk if a labour is considered a worker, as it is a privileged status and there are no penalties for misclassification in that sense. As a result, companies should always seek a lawyer and be on the side of staff status when the circumstances are unclear. It is important to consider the amount of work done before deciding whether to offer the worker a job or an independent contractual relationship. When the work is in progress and is usually done only by staff, it will be difficult to argue, from a legal point of view, that the worker is an independent contractor and not an employee. For example, a receptionist who, on weekdays from 9 a.m. to 5 p.m.m .m with a mandatory lunch break, answers by phone at a reception area at your company`s headquarters, is probably an employee, even if there is a written agreement regarding the receptionist as a contractor. On the other hand, an off-site telephone call service ensures that the workers who make the calls are contractors. However, in June, the California Labor Commission ruled that Uber had misclassified one of its drivers as an independent contractor and not as an employee. The Commission has focused on the fact that drivers are an integral part of Uber`s business. The ruling applies only to the employee who filed the complaint, but Uber is concerned that the same logic of the courts in California and other states may continue to apply.
Yesterday, a federal judge in San Francisco granted class action status to drivers who challenged the classification of Uber`s independent contractors. If these plaintiffs prevail, Uber will be required to reimburse its drivers for any costs they incurred for Uber during the ride, which would be considerable. The Board of Workers decided that the complainant driver was entitled to more than $4,000 in expenses and refundable interest. With more than 160,000 active drivers in the United States, Uber could face $640 million in damages if its U.S. drivers are considered employees, as well as operating costs that could make its model unsustainable.