If you ask Uber they will tell you, No they are sub-contractors, but if you ask The California Labor Commission they will say they A driver for Uber is an employee. In a ruling on June 3 ruling the the California Labor Commission concluded that drivers for Uber are employees, and not contractors, and Uber is subject to withholding Social Security, providing workers’ compensation as well as unemployment insurance. The court ruling applies only in California, and Uber is appealing the verdict.
If they lose the appeal, this will impact Uber’s cost structure and force changes in the way they hire and conduct their business. Other companies including Lyft, Instacart, Sidecar and other “crowdsourced” services. This is not the first time , or only state to reach a simular conclusion, a state agency in Florida also ruled that Uber drivers are employees.
We will wait to see the final ruling, but for now it apears that at least in California, the question, Are Uber drivers employees, seems clear.
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http://www.reuters.com/article/2015/06/17/us-uber-california-idUSKBN0OX1TE20150617
