Uber Appeals Class-Action Ruling

San Francisco, CA Following a federal judge’s ruling certifying the Uber lawsuit as a class action, Uber has filed an appeal of the judge’s ruling. On September 1, U.S. District Judge Edward Chen ruled that a California lawsuit challenging Uber’s business model could move forward as a class action. The lawsuit alleges that drivers for the ride-sharing company are employees and not contractors, and therefore should receive the same protections and benefits that employees are entitled to.

The original lawsuit was filed by three drivers, who alleged that they should be considered employees because Uber controls many aspects of their job. Under labor guidelines, there are certain conditions that must be met for workers to be considered independent contractors. The plaintiffs allege Uber controls everything from what the drivers charge to the circumstances surrounding termination, making them employees. Uber has argued that its drivers prefer to be independent contractors because it allows them flexibility in setting their hours.

The distinction between independent contractor and employee is an important one for workers and employers. True independent contractors have more discretion in their work, but they also do not have job protections including wage and hour protections, overtime or benefits including health insurance. They are also not generally eligible for work expenses, such as the cost of fuel or car maintenance. This makes independent contractors less expensive for employers.

According to The Wall Street Journal (9/15/15), Uber has filed an appeal of Judge Chen’s ruling, arguing that the three drivers named in the lawsuit cannot represent the thousands of other drivers, given the differences in individual circumstances. A ruling on class-action status is not a comment on the merits of a lawsuit but a determination that plaintiffs all have similar questions of fact. The Los Angeles Times (9/2/15) notes Judge Chen found that the drivers have similar enough circumstances, including being held to the same Uber controls.

Uber is not the only company to face such a lawsuit. Lyft, another ride-sharing company, and some home-cleaning companies also face lawsuits alleging their workers are misclassified as independent contractors.

Meanwhile, even employees with protections are filing lawsuits alleging their employers do not follow California employment regulations. A class-action lawsuit has reportedly been filed against Vons in California, alleging employees were not properly paid for overtime, not always given minimum wage and were not given proper breaks. The lawsuit claims time cards were falsified to make it appear employees were given adequate meal and rest breaks. Furthermore, plaintiffs allege they worked up to 12 hours in a day without being paid overtime.