General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCalifornia pokes big hole in Uber's business model
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Classifying Uber drivers as employees opens the company up to considerably higher costs, including Social Security, workers compensation and unemployment insurance. That could affect its valuation, currently above $40 billion, and the valuation of other companies that rely on large networks of individuals to provide rides, clean houses and other services.
Uber had argued that its drivers are independent contractors, not employees, and that it is "nothing more than a neutral technology platform."
But the commission said Uber controls the tools driver use, monitors their approval ratings and terminates their access to the system if their ratings fall below 4.6 stars.
http://www.reuters.com/article/2015/06/17/us-uber-california-idUSKBN0OX1TE20150617
This is an interesting turn of events.
"Disruption" shouldn't be an excuse for exploitation.
thelordofhell
(4,569 posts)former9thward
(32,006 posts)This ruling will be overturned in court. Uber drivers work when they want and for as long as they want. They are not directed by Uber. The ratings argument is silly. Every company determines how good its contractors work is. Then they decide whether they want to use them in the future.
Kingofalldems
(38,458 posts)Are you an expert in this field?
former9thward
(32,006 posts)so I suspect it is a loaded question that I will pass on. I know they disagree. The courts will not. BTW are you an "expert" in all the opinions you post here? Did not know that was a requirement...
Kingofalldems
(38,458 posts)Apparently you think you know more than experts on labor matters.
cui bono
(19,926 posts)are an 'expert'. Be it for incompetence or lack of ethics, a lot of people in every area of employment get it 'wrong'.
As to the Uber case, I have no position at this time.
EDITED
former9thward
(32,006 posts)I said I was not going to fall for a loaded question from you because you would shoot down anything I wrote. Did you ask the other posters if they were experts on labor matters? How could they say it was a correct ruling if they were not? There are a lot of experts in pretty much all subjects. They sometime disagree. Go into any court anyday and you find out. The real experts are the judges who will rule on this matter.
Logical
(22,457 posts)daleanime
(17,796 posts)or desperation?
former9thward
(32,006 posts)I know one Uber driver. His is choice.
daleanime
(17,796 posts)it's desperation.
former9thward
(32,006 posts)Nothing to do with Uber.
daleanime
(17,796 posts)there should be no improvement anywhere?
rpannier
(24,329 posts)Uber drivers are considered employees
mythology
(9,527 posts)Additionally, Uber dictates the price of the fares, the type/condition of the car and Uber collects the payments and gives the drivers a share.
Also in California, if somebody is essential to the core of the business, they are an employee, not a contractor. Uber without drivers, is an app that makes no money. Uber can insist all they want that they are a technology company, but it's a load of horseshit.
As for if it will be overturned, the 9th District Court already spanked FedEx for trying to claim that their delivery drivers were independent contractors. It's a good decision and one that will drag Uber, kicking and screaming like petulant children, into treating their employees correctly.
And that's before you get into Uber's other reprehensible practices like sabotaging competitors through a concerted effort to place phony requests for pick up and then cancelling at the last moment and smearing journalists who reported on Uber.
whatthehey
(3,660 posts)Incidentally this ruling applies to only the individual who brought the case and contradicts a previous ruling by the same commission.
I have no interest or bias in the decision, but it's a strange employment agreement that allows employees to work at will at any given moment and which involves no hierarchy, no interview process, no place or term of employment, no employer-provided resources and assigns work only by smartphone app. If that becomes employment, then what exactly is a contractor?
rpannier
(24,329 posts)Although the ruling affects only California, the state is Uber's home base, one of its largest markets, and sets a path often followed by regulators and courts in other states.
"Assuming its upheld on appeal, it may be more than influential," said Thomas Wassel, a partner at Cullen and Dykman. "It will be controlling in California."
I would also mpoint out (referencing the article) that it being overturned is not a done deal either
In another case earlier this month, Uber lost a bid to force arbitration in a federal lawsuit brought in San Francisco by its drivers. Earlier this year, the same U.S. District Court rejected Uber's bid to classify its drivers as independent contractors, saying a jury would rule on their status.
Also, a state agency in Flordia (though it doesn't say which one) ruled that Uber drivers are employees
Uber's business model is the 'have it's cake and eat it too' model. Their employees don't really make the money Uber promises. There have been assaults, rapes, robberies associated with Uber drivers on passengers and Uber claims they have no liability because the drivers are independent contractors
Spazito
(50,338 posts)progressoid
(49,990 posts)I've heard hotels are mad at AIRBNB as well.
Luminous Animal
(27,310 posts)and safety regulations.
progressoid
(49,990 posts)One of my clients is in the hotel biz. So far it hasn't impacted them much, but they aren't too pleased with airbnb not having to follow the same rules as them.
Luminous Animal
(27,310 posts)required to have adequate insurance coverage when they are off the clock (though still driving around looking for a fare), not required to have a finger-print background check, not required to have their vehicles inspected, and not required to have a handicap fleet. And surge pricing is bullshit.
paulkienitz
(1,296 posts)There are dozens of other industries that abuse contractor status. Including my current one. This is my fourth year as a temp. Uber can go (redacted)
Hoppy
(3,595 posts)Time and quantity. Based on this, I also believe the decision will not hold.
Luminous Animal
(27,310 posts)when determining employee status.
Starry Messenger
(32,342 posts)Oakland cabbies were ruled employees years ago by CA courts, on similar grounds.
Logical
(22,457 posts)NightWatcher
(39,343 posts)NightWatcher
(39,343 posts)and therefore illegal.
leftstreet
(36,108 posts)Plus the liability issues are...surreal