California lawsuit: Uber hits back – International
Uber, the auto service oh excuse me technology company that just makes an app and definitely does not employ drivers, is now fighting it out in court to make sure its employees don’t legally count as employees.
In its opposition submitted on Thursday, Uber argued that “plaintiffs failed to establish that their own claims are typical of those that might be asserted by the 160,000+ drivers they seek to represent”.
The suit is one of several pending cases that could have profound implications for the on-demand economy, which includes some of the world’s hottest technology startups.
Under this arrangement, Uber’s drivers take on the burden of expenses such as maintenance, insurance, gas and the vehicles themselves.
Uber is pulling out all the stops to rein in a major lawsuit that could change its business model. It could also have a ripple effect across the burgeoning startup culture, leading other companies with similar structures to recalibrate. If that happened, Uber nearly certainly would have to schedule its drivers on shifts to comply with labor regulations and protect itself against wage-and-hour suits.
Uber is appealing the labor commission’s decision and Berwick faces a new court date in October. “That doesn’t mean they’re my employee”.
Uber refutes the claim that drivers should be employees and says the lawsuit does not reflect the desires of most of its drivers to remain independent.
Superior Court Judge Sean Dunphy said in his ruling that there is “no evidence” the company is operating as a taxi broker or that it breached city bylaws. Determining whether she was an employee or independent contractor was critical to the hearing officer’s holding that the company had to pay her for certain expenses.
For example, Uber emphasizes that many of its drivers also work for competing companies like Lyft and Sidecar, and sometimes have multiple companies apps on at once.
Uber also argued that because it has created so many different service agreements over the years, not all Uber drivers have signed the same contract and are bound by the same terms, so numerous plaintiff’s complaints are not applicable to all Uber drivers. But Uber, like most companies, will do what it can to avoid a class-action lawsuit. “And why no three people can ever represent the interests of so many different drivers”, Uber told the The New York Times. They emphasize that while some drivers essentially work full-time, others use Uber to supplement income from a part-time job, or hire subcontractors.
On Monday, Mayor John Tory said that UberX was “operating outside of the current law and that is not sustainable” and called for council to rewrite city bylaws to create a level playing field for taxi drivers.