Oregon regulators say Uber drivers are employees
Oregon drivers working for transportation networks, like Uber and Lyft, should consider themselves “employees” of those companies, rather than independent contractors.
Factors in the Oregon decision included Uber’s degree of control over drivers and that drivers were an integral part of Uber’s business.
Uber is disagreeing with the conclusion of the opinion.
Avakian said that his opinion was merely a “helpful explanation” to the company on his interpretation of current Oregon labor laws.
According to Uber spokeswoman Eva Behrend, “The Oregon Bureau of Labor and Industries issued this opinion without talking to any drivers and after a brief five minute phone call with Uber that came out of the blue. It’s disappointing that a public body would have so little regard for the facts”. Uber contends many of its drivers don’t even work half-time – and they appreciate the independence and flexibility. Brad Avakian is the state labor commissioner, and a declared candidate for Secretary of State. “When corporations misclassify an employee, the worker is denied basic protections such as the right to be paid on time and in full”.
According to BOLI, drivers are employees instead of contractors because they pass the Oregon economic realities test.
“Uber suffers or permits drivers to work for the company’s benefits”. In June, the California Labor Commission ruled that an Uber driver was an employee and ordered the company to pay back wages and expenses.
Companies face higher costs for employees than they do for independent contractors, including benefits and payroll taxes.
“Our economy is stratified and widespread misclassification of workers is only going to push the gap between the rich and the poor further and further apart”. Regulators could only sanction Uber if a driver filed a formal complaint and regulators reviewed evidence and legal arguments specific to that persons situation.Uber rejected to the finding, saying its based on lax research and inaccurate information.