On Wednesday, the California Labor Commission ruled that a former Uber driver, Barbara Berwick was an employee and not an independent contractor. The ruling agreed with an earlier Florida decision. Berwick is to receive a little over $4,000 in employee expenses. Uber is currently appealing both decisions. If the appeal succeeds Berwick, who was described as a serial litigator by Buzzfeed, could get nothing.Click here for full story.
The question becomes how Uber will be affected if both suits are upheld. It seems that the ruling does not have an automatic effect on other drivers even those currently involved in one of the two class action lawsuits in progress. That’s because the decision may not be considered in other cases. The definition of an employee over that of an independent contractor is decided on a case to case basis. This information is according to Erika Monterroza, who is the Director of Communications Department of the Labor Commission’s industrial relations who gave a statement to Buzzfeed.
While the ruling may not crush Uber’s business model, it certainly has an effect states CNN. Uber could still be in trouble. According to Sach’s “… its looking more and more like Uber will be held to be an employer of it’s drivers.” Not all Uber and ride-hail-drivers want to be considered as employees. A study was done by SherpaShare some 63% of demand workers, including 86% of whom are Uber drivers, consider themselves to be independent contractors.