Lawsuit Alleges Uber Saved $500M by Misclassifying Its Drivers As Independent Contractors

By September 13, 2018 Uncategorized

In past blogs, we have written about the financial and legal incentives Uber has to continue classifying its drivers as independent contractors instead of employees. Indeed, we also extensively covered an important California Supreme Court decision that increased the likelihood Uber and Lyft drivers will become employees in the state of California.

Months after we wrote about the highest California court’s decision earlier in 2018, a new lawsuit alleges that Uber has saved approximately $500 million by misclassifying drivers as independent contractors rather than employees.

Case Alleges That Uber Is Violating a California Supreme Court Ruling

In a new case (Diva Limousine v. Uber Technologies Inc.), Uber, a legal complaint alleges that Uber has avoided paying hourly expenses and benefits to drivers that they would have received if properly classified as California employees. Further, the lawsuit goes on to argue that Uber has used these illicit labor savings to undercut the competition and price rides at lower rates to gain market share.

Unsurprisingly, for regular readers of our blog, the lawsuit cites the April Dynamex ruling issued by the California Supreme Court, which we wrote would likely make it more difficult for Uber to classify drivers as independent contractors. Now, it seems, the scope of the Dynamex case will be tested when this lawsuit is ultimately decided by the trial court (and any appellate courts afterward).

This latest case involves a car delivery service, and it comes mere months after Uber reached a settlement with over 2,000 New York drivers in January of 2018. In the settlement, Uber agreed to pay $3 million to settle a proposed class-action lawsuit brought by drivers who alleged that too many fees were taken out of their fares by the ride-hailing giant.

It remains to be seen what this latest legal action will mean for Uber’s ability to continue treating drivers as independent contractors. What does seem clear, however, is the fact that the legal status of Uber’s drivers is being monitored closely, especially in California.

As such, we will be monitoring these developments closely at The Ledger Law Firm since the legal status of Uber drivers is an important factor when determining liable parties in California car accidents.

Talk to The Ledger Law Firm If You Were Injured in a California Uber Accident

The Ledger Law Firm is a national personal injury law firm that has helped Uber accident victims recover millions in compensation for accidents that have occurred around the country. To this end, we also represent California Uber accident victims who have been harmed in accidents.

Our law firm is led by Emery Ledger, a licensed California personal injury lawyer who has earned national acclaim for helping accident victims recover the damages and compensation that are owed.

If you or a loved one has been injured in a ride-sharing accident involving Uber, a California Uber accident lawyer at Ledger Law is ready to discuss your legal claim. Contact us online for a free case evaluation to discuss your case with a California personal injury attorney today.