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Uber dealt blow in US court over 'employee' drivers | Uber dealt blow in US court over 'employee' drivers |
(35 minutes later) | |
Uber drivers are employees not contractors, a US court has ruled, in a move that could mean higher costs for the app-based taxi service. | Uber drivers are employees not contractors, a US court has ruled, in a move that could mean higher costs for the app-based taxi service. |
The decision by the California Labor Commission, which was filed in a state court, disputes Uber's previous claims that its drivers are contractors. | The decision by the California Labor Commission, which was filed in a state court, disputes Uber's previous claims that its drivers are contractors. |
It could mean extra costs such as social security, compensation and unemployment insurance. | It could mean extra costs such as social security, compensation and unemployment insurance. |
There could also be implications for firms with a similar business model. | There could also be implications for firms with a similar business model. |
Uber is "involved in every aspect of the operation", according to the ruling, which was sparked by a San Francisco-based Uber driver. | Uber is "involved in every aspect of the operation", according to the ruling, which was sparked by a San Francisco-based Uber driver. |
The company is now appealing against the award of $4,000 (£2,544) in expenses to the driver, Barbara Ann Berwick. | |
The California Labor Commission said Uber would not exist without drivers like Ms Berwick, and that the company depends on the drivers' work. | |
Uber has been arguing that is a "software platform" that "matches customer demand with supply". |