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California Ruling Puts Pressure on Uber and Lyft to Change How They Treat Drivers

Published on Jun 14, 2018 at 12:24 pm in News.

Rideshare companies like Uber and Lyft are making a big impact on major cities and suburbs. They provide an easy and safe way for people to get to their locations. With such a large demand, the rideshare companies need to have drivers to support their users. The companies call them independent contractors, but the drivers are pushing for something more that will improve their status and benefits.

What’s Changing for Rideshare Company Workers?

There was a recent court ruling that’s going to affect companies that want to keep their workers as independent contractors.

Uber drivers are considered independent contractors, which is different than being considered an employee. Many Uber drivers claim they work just like employees but don’t get any of the rights because of their label.

Companies save a lot of money by having independent contractors instead of employees.

The California Supreme Court ruled that businesses need to follow the ABC test to classify workers as independent contractors. The contractor must provide the service without the company’s control, the service isn’t the company’s core business, and the independent contractor provides their services to other companies.

What Benefits Do Drivers Have as Employees?

When workers aren’t classified as employees, they tend to miss out on many benefits and rights. Employees make at least minimum wage, get paid for overtime, paid sick leave, and are eligible for workers’ compensation and unemployment insurance.

Considering the large amount of drivers a rideshare company handles, they may not be inclined to make everyone employees. An alternative would be for the company to let the drivers stay as independent contractors, but the drivers can set their prices, terms, and more. This could possibly improve conditions for other industries, like trucking.

There is currently a bill in place that would give marketplace contractors benefits from the platform company. This aims to give the drivers benefits while keeping the independent contractor name and the company wouldn’t have to make everyone an employee.

However, the bill is facing some opposition. The California Labor Federation claims the bill hurts the workers and only benefits the wealthy companies.

If you’ve been injured in a car accident involving a rideshare company, an Uber accident lawyer from Rideshare Law Group can help you with your claim. With us at your side, we may be able to win you full compensation.