Uber And Lyft Case

Improved Essays
The legal aid for the plaintiffs in the well known Uber and Lyft legal battles, is taking the same fight to four more companies. The Uber and Lyft lawsuits were based around misclassification of workers as independent contractors. It seems to be a popular allegation amongst on-demand companies.
The four other companies soon to be facing trouble similar to that facing Uber and Lyft are: Postmates (delivery service), Instacart (delivery service), Washio (a laundry service), and Shyp (a shipping company). The lead attorney on the case indicates that companies need to realize that misclassification of employees is not something to mess around with. Doing so is a very real violation of labor laws.
Workers from all four companies sued their employers this week. They argued that they should be classified as employees rather than independent contractors and that their misclassification results in a lack of pay due according to minimum wage requirements as well as overtime pay laws. All three cases were filed on June 29th.
The fight to reclassify Uber and Lyft drivers is still underway with two cases set to go in front of a jury trial in August. Lawsuits have also been filed against Homejoy (a cleaning service), Caviar (food delivery startup), and Postmates. Shyp,
…show more content…
For 1099 employees or independent contractors, it’s very different. Employees frequently have valuable benefits offered, but not so for independent contractors! When a worker is an “employee,” the employer has the right to control certain aspects of their work environment and behavior (i.e. how they dress, how they interact with customers, etc.) This is not the case when dealing with independent

Related Documents

  • Improved Essays

    Entertainment workers Bambi Boots and Randy Rogers filed a complaint against their employer High Class Entertainment under the Fair Labor Standards Act, “It is a federal law applicable to employees engaged in interstate commerce or employed by an enterprise engaged in interstate commerce; sets minimum wages and overtime and regulates youth employment (Employment Law p. 480).” Fair Labor Standards Act has two requirements in order to file a complaint under this law. One is the employer and employee must have some kind of work relationship. Secondly, employer’s activities must meet an “in commerce” requirement. Bambi Boots and Randy Rogers have met those requirements because Bambi Boots started working with High Class Entertainment from May 26,…

    • 1058 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    In a Missouri lawsuit, Uber is using the Dental Examiners decision to challenge taxi laws in St. Louis. They are asking the court to remove restrictions that prevent their drivers from operating in the city. In North Carolina, LegalZoom.com was challenging the State Bar Association’s prohibition on Legalzoom.com providing services in the state. At the end of October, the Bar Association actually settled with LegalZoom.…

    • 1336 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    The U.S. Department of Labor (DOL) published advice regarding decreasing the misclassification of employees as independent contractors. The DOL said that most workers qualify as employees according to the terms set down in the Fair Labor Standards Act (FLSA) with stress placed on the fact the statute provides a very broad definition of employment. The head of DOL’s Wage and Hour Division, David Wells, put together a 15-page administrator’s interpretation that showcased employees being improperly labeled as independent contactors resulting in a gray area where employers were able to skirt minimum wage and overtime pay requirements. It was also pointed out that the correct classification would have critical implications for legal protections…

    • 347 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Employers only cared about what was best for there company and themselves, no one else really mattered for…

    • 642 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Statutory Employer

    • 793 Words
    • 4 Pages

    § 8-41-401(1)(a)(I). Thus, pursuant to this statute a “statutory employer” is an employer who is responsible for paying workers’ compensation benefits. To put this more simply, the business or entity that is contracting out part or all of its work is considered to be the employer to those whom are performing that work, even though they are not directly working for that business. In this situation, the person performing the work is usually employed by a subcontractor.…

    • 793 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Do you have an employment litigation attorney on retainer? Employers are required, by law, to follow ever-changing state and federal employment laws. You want to spend your hard earned profits on building your business instead of paying fines or defending lawsuits. An employment attorney can help you do just that. Why Do You Need to Hire an Attorney Now, Instead of Later?…

    • 516 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Minimum Wage Case Study

    • 344 Words
    • 2 Pages

    In looking at this question I am compelled to use the backdrop of Supreme Court cases, that I know about, and previous issues involving worker’s right’s, that have been a part of our nation’s history. I must state my conclusion that I think the proper “layer” of government to decide what the min-imum wage should be is the federal government. In making this conclusion, admittedly not one I am comfortable with, I want to give just a few justifications or reasons for my conclusion. I am a firm believer that the correct way to interpret the “minimum” in minimum wage, is that it means the minimum livable wage.…

    • 344 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    Uber has become one of the most favorite types of transportation today. Using our smartphones and the Uber App, we simply call the Uber to come and pick us up wherever we are. Uber quickly got a place in our hearts and its popularity is growing each day but it still has to deal with various legal battles around the world. You have probably heard that the Uber has faced charges for using its App as a taximeter.…

    • 228 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Lyft Car Essay

    • 933 Words
    • 4 Pages

    As Uber and Lyft make transportation more accessible, less people will purchase vehicles. Metropolitan areas present the demographic most likely to forgo car ownership, with rural communities more likely to continue purchasing cars. These negative effects have yet to transpire. 20-25% of urban vehicles are estimated to be used for ridesharing by 2025, leading to a 20% drop in car ownership . A 20% decline in car sales would be catastrophic for many companies, motivating many to start looking at alternative strategies to adjust to the changing…

    • 933 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Uber Corporate Strategy

    • 1010 Words
    • 5 Pages

    Analysing with the Boston consulting Group matrix, these two businesses are both in the “problem child” of the matrix which means that they both have a high market growth but currently a low market share within the portfolio. However, revolutions could be made in the corporate-level strategy with the intervention of driverless vehicles technology. The “problem child” have the chance to turn into a “star” in the next few years (Johnson et al., 2014). From the company perspective, Uber truly save the cost of human capital and the delivering speed might be faster than that of a human-driving car. Consumers benefit from paying lower delivery fees and could order food and receiving packages regardless of the weather.…

    • 1010 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Uber Case Study

    • 722 Words
    • 3 Pages

    This week I chose an article about how car services began to make their apps to go against Uber. Uber is an application that is used by individuals to request for a car service to appear wherever they are with a touch of a button. I personally believe that this is a great application to use for transportation. However, the yellow taxis, car services, or other transportation are not quite fond off this system. Other car services have been complaining about Uber and have become frustrated with this system getting involved.…

    • 722 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    3. Analyzing 3.1 Stakeholder Analysis Identify Stakeholder The stakeholders are important to company business decisions and performs. As Uber Company, the internet stakeholders are owners (co-founder Travis Kalanick and Garrett), the managers, IT support staffs and employees of Uber Company, and the external stakeholders include government, user/customer and competitors. Internet stakeholders: Owners (Uber CEO, Travis Kalanick; co-founder, Garrett): Uber CEO and cofounder, world’s newest tech billionaire, Travis Kalanick.…

    • 2384 Words
    • 10 Pages
    Superior Essays
  • Improved Essays

    Independent Contractors

    • 1822 Words
    • 8 Pages

    Independent contractors are usually people considered to be lawyers, doctors, accountants, or even auctioneers who in a manner of speaking are professionals who present their services to the general public. Still an individual can be considered an independent contractor if the payer has the right to control or exact only the effect of the work and not the outcome of the performance. An employee would be defined as an individual who works either full or part-time under an agreement of employment, either oral or written, and has recognized rights and duties in an organization. Still, what really matters is if an employer has the authorization to control the particulars on the services provided to an independent contractor verses an employee.…

    • 1822 Words
    • 8 Pages
    Improved Essays
  • Great Essays

    Uber is an American international transportation network company. The company operates the service through the Uber mobile app, through which consumers with smartphones submit a trip request that is then forwarded to Uber drivers who use their own cars to take the consumer from point A to point B. Since the launch of Uber many companies have copied the business’s ideology (e.g. Lyft, Sidecar, BlackJet etc.) and that growing trend is called Uberification. The problems stated by NELP in the article show that the subject are the contract workers that work for these type of companies. The first problem that the article suggests is the lack of benefits. Since the company doesn’t think of these workers as employees but as independent contractors…

    • 1390 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Background “Tap a Button, Get a Ride’’, this meaning leads to Uber Technologies Inc. Uber is online transportation network company, is an American worldwide company, based in San Francisco, California. Established in 2009, by Garrett Camp and Travis Kalanick. The Company was initially founded as UberCab.…

    • 1028 Words
    • 5 Pages
    Improved Essays