Uber fights back against business threatening lawsuit

In a July 9 court filing, Uber took steps against a looming class action lawsuit. The suit, which argues that Uber drivers should be classified as employees instead of independent contractors, could, if successful, crush the transportation company's profit margins and make it much more difficult to operate.

The plaintiffs in the case are three drivers who are arguing that Uber should pay them job related expenses, including gas for the time they spend driving and general vehicle maintenance. Should drivers be found employees by the court, Uber would also be liable for Social Security, workers' comp, and unemployment insurance for over 160,000 of its California based drivers.

Uber's latest move against the lawsuit has been a filing that the case should not be allowed to proceed as a class action. Supporting their claim was a a petition signed by over 400 of its drivers, all in support of company. Several drivers went as far as saying that, if the court decided they were Uber employees, they'd be unable to work for multiple ride services, and would, by extension, wind up making significantly less money. 

Uber considers its drivers to be self-employed entrepreneurs who are running their own cab business using Uber's and, often, other ride-sharing apps. In the words of a spokesman "the reality is that drivers use Uber on their own terms: they control their use of the app. It's why there is no typical driver, the key question in the case."

Regardless of where you are as a company it's always good idea to get in touch with a qualified business attorney as soon as possible. A good lawyer can make sure your rights as a business owner are protected, and help you better navigate through the nuances of running a business.

Categorised in: Business Law

This post was written by