With a smartphone and a credit card, Uber customers can virtually hail-a-ride with the touch of a button.
However, Uber drivers are starting to come forward with claims that after the cost of gas and car payments for a “company-compliant” vehicle, they make well under minimum wage.
The transportation network company alleges that Uber drivers are independent contractors, making them ineligible for labor law protections including minimum wage and overtime.
Uber even prohibits tipping drivers as it provides no option within the app and drivers are allegedly told to discourage customers from leaving a cash tip.
Some drivers have reported that between the lack of tips and the costs related to being an Uber driver, they make just $3 per hour.
Uber Wage and Hour Lawsuits
Several Uber class action lawsuits have been filed that accuse the app company of misclassifying drivers as independent contractors when they should be considered employees, and therefore qualify for protection under wage and hour laws.
If plaintiffs are successful and Uber is forced to change the status of their drivers to employees, the California based company would be required to follow strict labor laws.
The transportation mobile app company would need to create schedules for their drivers in order to make sure they receive payment for any overtime.
Uber has argued that the drivers pick their own terms when signing up, and classifying them as employees could actually end up hurting a lot of drivers who would have to choose between their regular jobs and being a part-time Uber driver.
According to court documents, Uber allegedly has 17 different types of agreements that drivers can choose from ranging from full-time to part-time work.
The company states that some drivers use their own cars and some are taxi and limousine drivers who simply use the app as a way to connect with potential customers.
However, plaintiffs filing Uber lawsuits claim that the company maintains control and supervision on how Uber drivers provide transportation services, which means they should be considered proper employees and not independent contractors.
Uber has already filed a motion to dismiss at least one of the class action lawsuits filed against them. California federal judge Edward Chen denied the motion to dismiss an Uber lawsuit filed in San Francisco stating that Uber “would not be a viable business entity without its drivers…. Uber’s revenues do not depend on the distribution of its software, but on the generation of rides by its drivers.”
California Labor Laws Explained
Uber employs more than 160,000 drivers in California. If a court finds that the company has misclassified their drivers as independent contractors rather than employees, drivers could be owed money according to California labor laws.
According to California wage and hour laws, workers are entitled to a 30 minute, duty-free lunch break after five hours of work, or to receive one hour of pay at their regular hourly rate.
California break laws also require a 10 minute break for every four hours of work, or the employer must pay their worker for one hour of pay at the regular hourly rate within a paycheck cycle. In California, employees have up to three years to claim unpaid wages.
Join a Free California Uber Driver Class Action Lawsuit Investigation
California Uber drivers may be eligible to join a class action lawsuit investigation into claims they were misclassified as independent contractors under California law. Find out if you qualify.
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