News & Analysis as of

Independent Contractors Wage and Hour Uber

Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent... more +
Independent contractors are individuals or entities that perform work for other individuals or entities, but are not employees of those individuals or entities. Whether a worker is an employee or an independent contractor is not always an easy determination. However, due to differences in tax and liability treatment, misclassifying an employee as an independent contractor can have serious consequences. Autonomy is the defining feature of independent contractor arrangements. Independent contractors control the manner and method of how work is performed while payers control the desired result. Control over schedule and number of hours worked, ownership of equipment or tools, permanency of relationship, and acceptance of jobs from multiple entities are all possible factors in determining whether a worker is an employee or independent contractor.   less -
Fisher Phillips

Uber and Lyft Settlement Provides New Precedent for the Gig Economy and Major Benefits for Massachusetts Drivers: Key Employer...

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Uber and Lyft just reached a $175 million settlement with Massachusetts state prosecutors that permits their drivers to stay classified as independent contractors – not employees – but entitles the drivers to significant...more

Carlton Fields

Federal Court Rejects Argument That Subsequent Opt-Out of Arbitration Clause Precluded Arbitration

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The U.S. District Court for the Northern District of Illinois has rejected an argument that opting out of arbitration clauses precluded arbitration under prior arbitration agreements in a dispute between Uber drivers and...more

Marshall Dennehey

Third Circuit Holds Uber Drivers Are Not Exempt From Federal Arbitration Act and Are Subject to Binding Arbitration

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The Third Circuit joined the First and Ninth Circuits in holding that Uber drivers are not exempt from the Federal Arbitration Act (FAA) and, therefore, are subject to binding arbitration.  The plaintiffs in the underlying...more

Ervin Cohen & Jessup LLP

Uber Drivers Cannot Bring Class Action for Employment Claims

In a matter of first impression, a panel for the Third U.S. Circuit Court of Appeals recently affirmed a judgment of the District Court of New Jersey in Singh v. Uber Techs., Inc. (April 26, 2023), compelling arbitration in a...more

CDF Labor Law LLP

California Court Of Appeal Holds That App-Based Driver And Delivery Businesses Can Properly Classify Workers As Independent...

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On March 13, 2023, in Castellanos v. State of California, the California Court of Appeal handed down a pink unicorn decision in favor of app-based driver and delivery businesses that permits them to properly classify workers...more

BakerHostetler

You Can Contract If You Want To: California Appellate Court Leaves Prop 22 Largely Intact

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On March 13, a California Court of Appeal reversed most of a lower court ruling invalidating Proposition 22, the state’s 2020 voter-approved gig economy law allowing giant app-based ride-hailing and delivery companies, like...more

Locke Lord LLP

More State Workforce Agencies Will Likely Try to Emulate New Jersey’s $100 Million ‎Settlement with Uber: September 2022...

Locke Lord LLP on

Undoubtedly the most meaningful legal development in September 2022 was Uber’s agreement to pay $100 million in settlement to the New Jersey Department of Labor and Workforce Development for back unemployment taxes. As...more

Fox Rothschild LLP

Can $100,000,000 Be A Good Deal– Ask Uber!

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Uber just settled its New Jersey UI audit on independent contractor assessment for $100,000,000, down from an original sum much greater. Pretty good considering that misclassification is a heavy focus of the NJ Department of...more

Fisher Phillips

Massachusetts High Court Hears Argument on Gig Driver Ballot Question

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As we wrote back in January, Massachusetts is in the midst of a multi-fora battle over whether gig drivers (those using app-based platforms such as Uber, Lyft, DoorDash, and Instacart) should be treated as employees or...more

CDF Labor Law LLP

Unpublished California Opinion Did Not Authorize Arbitration Over Threshold Issue of Independent Contractor or Employee in a PAGA...

CDF Labor Law LLP on

A former driver for UberEats alleged that Uber misclassified drivers as independent contractors as part of a PAGA action.  Uber sought an order to compel arbitration of the question of whether the plaintiff was an independent...more

Fisher Phillips

Dispute Over Gig Drivers’ Independent Contractor Status Being Fought on All Fronts in Massachusetts

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Massachusetts is one of handful of states to have adopted the stringent “ABC” test for determining whether a worker is an independent contractor or employee. That has made it one of the most fertile battlegrounds over this...more

Obermayer Rebmann Maxwell & Hippel LLP

California’s Struggle With Its “ABCs” Continues

In January of 2020, California enacted a new law that codifies a strict test for determining if workers are independent contractors or employees and thereby entitled to minimum wage, overtime, and various other benefits. ...more

Manatt, Phelps & Phillips, LLP

The Battle Continues: Prop 22 Struck Down, AB 5 Appealed

The long-running battle over the classification of workers as independent contractors or employees in California continues, with a trial court judge striking down Proposition 22 and an appeal to the U.S. Supreme Court to...more

Seyfarth Shaw LLP

Ninth Circuit Rules Uber Drivers Must Arbitrate Classification Claims Because They Are Not Interstate Transportation Workers

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Seyfarth Synopsis: The Federal Arbitration Act (“FAA”) exempts workers engaged in interstate commerce from enforcement of mandatory arbitration agreements. Uber drivers (and other drivers working in the gig economy) have...more

Locke Lord LLP

Independent Contractor Handshake in New York: New Bills Would Establish a Form of “Sectoral” Bargaining for Selected Gig Economy...

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A set of bills being finalized by the New York State legislature would, if enacted, dramatically alter the landscape of laws affecting independent contractor drivers who provide services to customers of ride-sharing...more

BCLP

UK Supreme Court’s decision on status of Uber drivers and its significance on gig economy

BCLP on

Over the past decade, the rapid technological advancement has led to the emergence of the so-called “gig economy”. This term often refers to a market system whereby platform companies engage temporary or freelance workers to...more

Robins Kaplan LLP

Financial Daily Dose 3.17.2021 | Top Story: Uber to Reclassify Its 70k British Drivers as “Workers”

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Uber will officially classify its British drivers, all 70,000 of them, as “workers” following a “major legal defeat” for the ride-hailing company in the British Supreme Court last month. The move entitles the drivers to “a...more

Robins Kaplan LLP

Financial Daily Dose 2.19.2021 | Top Story: UK High Court Deems Uber Drivers “Employees”

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Britain’s Supreme Court dealt Uber a blow this morning when it ruled that “drivers must be classified as workers entitled to a minimum wage and vacation time.” The decision—a disaster for Uber in a dispute that reaches back...more

CDF Labor Law LLP

Proposition 22 Challenged in Oakland State Court

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Last November, California voters convincingly (almost 60% supporting) enacted Proposition 22.  This Proposition was a well-funded effort that allows gig drivers working for companies like Uber, Lyft and Doordash to avoid the...more

FordHarrison

Driving in Reverse? Uber/Lyft Drivers Seek to Undo California's Proposition 22

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Note to Readers: In this two part-series, we will discuss major developments in California’s gig economy landscape this week. Part 1 discusses a lawsuit filed by Uber and Lyft drivers challenging the constitutionality of Prop...more

Obermayer Rebmann Maxwell & Hippel LLP

Freelancing During the Biden Administration: Will the “ABC” Test Go Federal?

Fourth in a Series of Blogs Regarding the Presidential Transition - On January 1, 2020, AB-5 went into effect in California. The law, which had gig workers such as Uber and Lyft drivers squarely in its sights, sought to...more

Ervin Cohen & Jessup LLP

App Companies Victorious in Prop 22 Fight

On November 4, 2020, Uber, Lyft and Door Dash secured a victory in their expensive campaign to categorize app-based drivers as independent contractors. 55% of California voters voted in favor of Proposition 22, which means...more

Cozen O'Connor

States of Flux — What Employers Need to Know About Election 2020 and New State Laws

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With so much focus on the presidential election, there has been little mention of the meaningful changes to state laws approved by voters across the country. As noted below, many of these changes will have a significant...more

Manatt, Phelps & Phillips, LLP

Ride-Sharing Companies Drive Home Victory With Ballot Measure

The battle over how to label workers in the gig economy continues in California, with voters approving a new measure exempting ride-sharing companies from a state law declaring drivers to be employees. Proposition 22...more

Polsinelli

California Voters Pass Proposition 22, Changing How App-Based Drivers Are Classified

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On November 3, 2020, California voters passed Proposition 22, a ballot measure that classifies certain app-based rideshare and delivery drivers as independent contractors. ...more

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