This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/world-us-canada-33171508
The article has changed 6 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Uber dealt blow in US court over 'employee' drivers | Uber dealt blow in US court over 'employee' drivers |
(about 1 hour 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, means a former driver must be awarded expenses. | |
If applied more widely it could mean extra costs such as social security and unemployment insurance. | |
But Uber said the ruling only applied to this one driver. | |
In a statement, it said a previous ruling in California and other rulings in five other US states came to the opposite view, that drivers are contractors. | |
"It's important to remember that the number one reason drivers choose to use Uber is because they have complete flexibility and control. | |
"The majority of them can and do choose to earn their living from multiple sources, including other ride sharing companies." | |
The company is now appealing against the award of $4,000 (£2,544) in expenses to the San Francisco former Uber driver, Barbara Ann Berwick. | |
The California Labor Commission ruled that Uber is not just enabling the service between drivers and passengers but is "involved in every aspect of the operation". | |
The commission said Uber would not exist without drivers like Ms Berwick, and that the company depends on the drivers' work. | |
Uber had been arguing that is a "software platform" that simply "matches customer demand with supply". |