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Lawsuit claims Uber gains $500 million from IC misclassification in California (BenefitsPRO)

September 14, 2018

A lawsuit filed this week against Uber Technologies Inc. claims the human cloud, ride-sharing firm may save more than half a billion dollars annually by misclassifying drivers in California as contractors rather than employees, BenefitsPRO reported. The lawsuit, brought on behalf of Studio City, Calif.-based livery service Diva Limousine Ltd., claims Uber fails to pay drivers for breaks as required under California law and shirks employer tax obligations. “Uber has consistently lost money on Uber rides, and would lose even more if it bore the full costs of its vehicle fleet and labor force rather than illegally shifting them onto drivers,” the plaintiff's attorneys wrote.