Uber drivers are employees, not contractors: California Labor Commission
Source: Reuters
A San Francisco-based driver for smartphone-based ride-hailing service Uber is an employee, not a contractor, according to a ruling by the California Labor Commission.
The ruling, filed on Tuesday in state court in San Francisco, said Uber is "involved in every aspect of the operation." It is the latest in a host of legal and regulatory challenges facing Uber in the United States and other countries.
Uber had argued its drivers are independent contractors, not employees, and that it is "nothing more than a neutral technology platform."
If Uber drivers are employees, that opens Uber up to 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.
Read more: http://www.reuters.com/article/2015/06/17/us-uber-california-idUSKBN0OX1TE20150617
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