CNET reports the drivers sued Uber for misclassifying them as independent contractors rather than employees.
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In San Francisco’s U.S. District Court today, Judge Edward Chen is scheduled to decide whether to grant class action status to a lawsuit filed by three drivers.
A decision on whether 16,000 Uber drivers can join a lawsuit over their employement classification has been delayed at least a few months. Chen questioned Boutrous’s claim that their flexibility would have to evaporate if they were reclassified, saying those drivers may have been under the impression that things would have to change rather than be within Uber’s discretion to change. Whether three or 160,000 people ultimately sue Uber, the case questions the way Uber does business and just how valuable – and ultimately successful – the company can be.
Liss-Riordan, who was given her nickname by American Airlines skycaps after winning them a six-figure settlement in a wage-and-hour case, argue that Uber is really an transportation company using technology to pose as mere software licenser in order to save money and unfairly compete.
Under that scenario, Schiller doubts Uber would try to settle the case, moving instead to a jury trial, where the company would continue its aggressive defense.
The case is being described as one that could “make or break Uber”.
By doing that, Uber is able to save on several costs including things like provided a auto for the drivers, health insurance, social security, overtime and paid sick leave.
“I think [Uber] can well afford to provide its drivers with the protections they should have under the laws”, Shannon Liss-Riordan, the attorney for the three drivers, told KQED earlier this year.
Liss-Riordan countered by offering a declaration from her paralegal, who had called about 50 of those drivers to ask if they understood the stakes. Uber says if they were employees, it might be forced to change that.
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Uber maintains that many drivers want to remain independent contractors because it allows a flexible work schedule, said David Plouffe, the Democratic Party strategist who is now Uber’s senior adviser. Curtis Lee, CEO of on-demand valet company Luxe, says that they hope that as employees their valets will be more likely to stick around and be more dedicated to the company. “For them to lose that flexibility would be devastating because so many people are using it to make ends meet, to add a little additional income on top of a full-time job, or a spouse’s job”. Grocery store Instacart recently gave workers the choice to be employees or contractors.
