Judge Rules Uber Driver Is Considered An Employee
The California Labor Commission ruled that Uber driver, Barbara Ann Berwick, is an employee as opposed to a contractor. If this ruling is applied to all Uber drivers this could potentially mean higher costs for the app-based taxi service, including extra costs such as social security and unemployment insurance. Ms. Berwick will be awarded more than $4,000 of expenses. The award includes reimbursable business expenses such as tolls, parking citations, mileage, legal fees and interest.
Uber states that the ruling only applied to this one driver and will not affect other Uber drivers. Five other US states have ruled Uber drivers as contractors. Uber is appealing against this ruling for Ms. Berwick.
Uber drivers have complete flexibility and control. They have the ability to earn their living from multiple sources including other ride sharing companies. The drivers also pay for their own cars, insurance, gas, tolls and general costs of operating and are paid 80% of each fare.
Uber is currently operating in more than 50 countries and is worth an estimated $50 billion making it one of the world’s most valuable start-up companies.