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California Labor Commission rules Uber driver an employee

June 18, 2015

The California Labor Commission ruled a San Francisco Uber driver was an employee of the ride-sharing service company and not an independent contractor. The ruling, made public Tuesday when Uber filed an appeal, ordered Uber to pay driver Barbara Ann Berwick $3,878.08 for reimbursable expenses and $274.12 in interest. The ruling applies only to this particular case and not all Uber drivers.

According to the commission, Uber vets prospective drivers, controls the tools drivers use (i.e. cars), and monitors the transportation drivers’ approval ratings, terminating their access to the application if the rating falls below a specific level.

“Defendants hold themselves out as nothing more than a neutral technological platform, designed simply to enable drivers and passengers to transact the business of transportation,” the commission’s decision said. “The reality, however, is that defendants are involved in every aspect of the operation.”

Uber is appealing the decision, citing a 2012 ruling by the same commission that the driver is an “independent contractor and not a bona fide employee.” According to Uber, labor departments or labor commissions in other states — Georgia, Pennsylvania, Colorado, Texas and Illinois — have ruled that the driver is an independent contractor.

“The California Labor Commission’s ruling is non-binding and applies to a single driver,” an Uber spokeswoman wrote in a statement. “Indeed it is contrary to a previous ruling by the same commission, which concluded in 2012 that the driver ‘performed services as an independent contractor, and not as a bona fide employee.’ Five other states have also come to the same conclusion.  It’s important to remember that the No. 1 reason drivers choose to use Uber is because they have complete flexibility and control. The majority of them can and do choose to earn their living from multiple sources, including other ride sharing companies.”   

The California case follows a Florida agency’s ruling last month that an Uber driver is an employee in the case of a man who filed for unemployment benefits after the ride-sharing service deactivated his account.

Two federal, class-action cases have also been filed by drivers against Uber and its competitor Lyft.