There has been an ongoing debate relating to no matter whether or not gig-economy drivers for Uber and Lyft are independent contractors or staff, who would be eligible for positive aspects. The National Labor Relations Board lately ruled Uber drivers, particularly amongst 2015 and 2016, had been independent contractors, Bloomberg Law very first reported.
“Drivers’ virtually complete control of their cars, work schedules, and log-in locations, together with their freedom to work for competitors of Uber, provided them with significant entrepreneurial opportunity,” the memo states. “On any offered day, at any totally free moment, UberX drivers could choose how finest to serve their financial objectives: by fulfilling ride requests by means of the App, functioning for a competing rideshare service, or pursuing a distinctive venture altogether. The surge pricing and other economic incentives Uber utilized to meet rider demand not only reflect Uber’s “hands off” method, they also constituted a additional entrepreneurial chance for drivers.”
This selection aligns with a equivalent a single from the Division of Labor, which determined gig-economy workers are independent contractors and consequently not eligible for minimum wage and overtime spend.
This selection, even so, does not imply there won’t be statewide lawsuits targeting the likes of Uber and Lyft relating to employment classification. What this does imply is the NLRB will retain a position that Uber drivers are not eligible for federal protections about unionizing. Drivers will also have a tougher time to file unfair labor practices charges at the federal level.
The release of this selection comes just days soon after Uber created its lackluster debut on the NYSE. Ahead of the IPO, drivers protested outdoors of the corporation’s San Francisco headquarters, looking for far better wages, positive aspects, transparent policies and a voice. Drivers also went on strike all more than the globe with equivalent demands.