Uber pushes back against California driver lawsuit
Uber’s latest motion in the case includes declarations from 400 drivers explaining why they either don’t view themselves as employees or prefer to be classified as independent contractors.
Uber is pulling out all the stops to rein in a major lawsuit that could change its business model.
In a filing with a federal court in California, the ride-hailing company said that the three drivers should not be allowed to bring the lawsuit as a group. Berwick sought to have Uber reimburse these expenses, which would be required of the company under California law if she was an employee. 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.
Driver Selenge Thompson, for example, was cited as having told Uber that she left corporate work “to be an independent contractor with Uber, so she would never again have to “miss out on so many of (her) daughter’s firsts”, Uber said”. These personal statements from Uber drivers in California reveal that the drivers favor the status of an independent contractor over full-time employees.
The case is in the process of being decided by Boston attorney, Shannon Liss-Riordan whether it should be a class action.
The company also called plaintiff Manahan a fraudster, pointing to his admission in a deposition that he “fraudulently manipulated” Uber’s driver referral program – where he referred drivers to Uber, paid them to complete sham rides, and collected more than $25,000 in referral incentive payments.
Uber, however, is being sued by three drivers who contend that they are in fact employees and entitled to be reimbursed by Uber for expenses such as gas, vehicle maintenance, and the like.
Shyp recently decided that its couriers would now be considered as employees with benefits, though it said the decision had not been prompted by any legal action filed against the company.
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.
Shipping service Shyp said last Wednesday that it would make all of its couriers full employees, who will now get workers compensation and other benefits.
Weinberger also said in some areas, such as the airport fee of $2 per pick-up and drop-off, the charge to Uber will be more significant than to other ride providers. That could be because drivers tend to log onto the platform when they want to work, and from there accept a high percentage of jobs.
But the taxi industry remains convinced Uber is consciously flouting the law by keeping its drivers on the road.