CWS 3.0: July 2, 2014

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Uber misclassifies drivers as independent contractors claim lawsuits

Two class-action lawsuits have been filed against Uber, alleging the San Francisco-based company improperly classified its drivers as independent contractors. The lawsuits show misclassification remains a concern.

One lawsuit was filed representing Massachusetts drivers on June 26 by Boston attorney Shannon Liss-Riordan. A similar lawsuit was filed last August in federal court representing drivers located outside of Massachusetts.

Uber provides a mobile phone app that enables customers to request a car and driver.

“The drivers’ services are fully integrated into Uber’s business, and without the drivers, Uber’s business would not exist,” according to the complaint in the suit filed in Massachusetts state court. “In addition, drivers are required to follow a litany of detailed requirements imposed on them by Uber and they are graded, and are subject to termination, based on their failure to adhere to these requirements (such as rules regarding their conduct with customers, the cleanliness of their vehicles, their timeliness in picking up customers and taking them to their destination, what they are allowed to say to customers, etc.)”

The suit also says Uber advertises that a gratuity is included in the cost of its car service “but drivers do not receive the total proceeds of any such gratuity.”

Uber, in a statement, said it planned to defend the rights of drivers to build their own business.

“While we can’t comment on active litigation, I can tell you that Uber will vigorously defend the rights of drivers to build their own small business, and riders to enjoy competition and choice,” according to the statement from Uber spokesman Taylor Bennett.