California Uber Driver Given Unemployment Benefits

Los Angeles, CAIn another sign that Uber drivers might be employees rather than independent contractors, a former California Uber driver, one who is involved in the California labor lawsuit, has reportedly been approved for California unemployment benefits. Unemployment benefits, which are not given to independent contractors, are granted by the Employment Development Department.

According to SF Weekly (3/4/16), Patrick Ely applied for unemployment benefits after his access to Uber’s app was deactivated. Ely had driven for Uber for more than a year and initially made around $1,100 per week. But Uber lowered its rates, and Ely says he found he was making less than half as much money for working the same hours. After he and other drivers filed a lawsuit against Uber, alleging violations of California labor law, Ely says he was no longer able to access Uber’s app, meaning he could no longer drive for Uber.

Ely then filed for unemployment benefits, and had his application approved. An attorney for Ely told SF Weekly that a large part of the Employment Development Department’s decision was determining how much control Uber had over Ely’s work.

The amount of control an individual or a company has over the worker’s job is an important factor in determining whether a person is an independent contractor or an employee. Independent contractors have more authority and discretion in their job; they are able to set their own rates, determine their working conditions and control their hours. Employees are under greater control of the company they work for. The company generally controls their pay (or the amount charged), the hours worked and the working conditions. The company can also fire an employee at any time.

There are other factors that determine whether a person is an independent contractor or an employee. These factors include whether the work is part of the regular business of the alleged employer, whether the services rendered require special skills, and the expected duration of the working relationship.

In other words, it’s not enough that the alleged employer says the worker is an independent contractor, the nature of the job and the relationship has to back that classification. If it does not, the worker is likely an employee and eligible for all the rights and benefits of an employee.

In September 2015, US District Judge Edward M. Chen granted class-action status to Uber drivers involved in the California labor lawsuit.

The lawsuit is O’Connor et al. v. Uber Technologies Inc. et al, case number 3:13-cv-03826, in the US District Court in the Northern District of California.