Sacramento, CAAlthough the Lyft California labor lawsuit has been settled, the Uber lawsuit has so far not slowed down, with more drivers joining lawsuits filed in more than 10 states. A federal labor lawsuit filed in California has already been certified a class action, and a new lawsuit filed in Philadelphia illustrates some of the complaints alleged by drivers across the United States. Plaintiffs say they were misclassified as independent contractors when they should have been employees. Because of that misclassification, the lawsuits allege, drivers were improperly denied benefits and protections they should have received.
Joseph Dinofa filed one such lawsuit against Uber in Philadelphia, and court documents filed on his behalf highlight some of the issues drivers say they came up against, specifically the issue of independent contractors versus employees.
The line between independent contractor and employee is often blurry, but the courts tend to rely on a few factors, including that an independent contractor sets his or her fees and has a great deal of discretion in carrying out job duties. Dinofa’s lawsuit, however, claims Uber had control over most aspects of his job.
“Uber also unilaterally sets the fares for all rides and drivers are required to charge the cost determined solely by Uber,” the lawsuit alleges. “In addition, all drivers for Uber must maintain an average customer star evaluation of at least 4.5 out of a possible 5 stars…If a driver fails to maintain an average customer rating of 4.5, Uber will deactivate his or her ability to use the application to pick up customers, an action tantamount to terminating the driver ‘at will,’ a hallmark of an employee-employer relationship.”
Independent contractors are not guaranteed minimum wage or overtime, nor are they given rest and meal break protections. Despite not having to pay minimum amounts to its drivers, Uber also allegedly did not forward gratuities to its drivers and instructed drivers to refuse the cash gratuity if offered.
“Uber also retained all gratuities owed to aggrieved employees despite representing to its customers and advertising that gratuity is included in the total cost of the car service,” the lawsuit claims. Dinofa argues that not only was he not paid minimum wage and not given his gratuities, he was responsible for between $50 and $300 in expenses linked to his Uber work. As a result, he says there were some weeks he earned only $80.
Dinofa’s claims are similar to drivers across the United States - including California - in alleging drivers were classed as independent contractors but treated like employees, and were denied tips, minimum wage, overtime and proper breaks.
Lyft, another ride-sharing company, recently settled a similar class-action lawsuit with its drivers. That settlement will see Lyft rewrite its driver terms and conditions to more accurately reflect that the drivers are independent contractors.
The lawsuit is Dinofa v. Uber Technologies, case number 2:15-cv-06121, in US District Court, Eastern District of Pennsylvania.
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