California says Uber driver was employee
The labor commission ruling could substantially affect Uber's business model.
The California Labor Commission has ruled that a former Uber driver was an employee during her time with the company. Uber filed an appeal yesterday. But this probably won’t be the last battle fought on the front lines of the so-called gig economy.
“Got a car? Turn it into a money machine.” So says Uber’s website. Sounds tempting, huh? But Uber drivers pay for their own gas and their own insurance. They don’t get paid for waiting time.
“And that is, of course, one of the reasons why Uber has been so successful is because they don’t carry these costs,” says Gerald Friedman, chair of the economics department at the University of Massachusetts Amherst. Friedman says the ruling could set a precedent for millions of independent workers around the country, “and it’s going to encourage suits like this in other states.”