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Uber dealt blow in California over 'employee' driver | |
(35 minutes later) | |
An Uber driver in California has been deemed an employee, not a contractor, in a ruling that could mean higher costs for the app-based taxi service. | |
The decision by the California Labor Commission means the driver must be awarded more than $4,000 (£2,544) of expenses for the period she worked. | |
If applied more widely it could mean extra costs such as social security and unemployment insurance. | If applied more widely it could mean extra costs such as social security and unemployment insurance. |
But Uber emphasised 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. | 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. | "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 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 more than $4,000 (£2,544) in expenses to the San Francisco former Uber driver, Barbara Ann Berwick. | The company is now appealing against the award of more than $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 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. | 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". | Uber had been arguing that is a "software platform" that simply "matches customer demand with supply". |
The app-based taxi firm has become one of the world's most valuable start-up companies, operating in more than 50 countries and worth an estimated $50bn. | The app-based taxi firm has become one of the world's most valuable start-up companies, operating in more than 50 countries and worth an estimated $50bn. |