Uber is a popular multinational transportation company with presence in over 58 countries and 300 cities. Although the company has maintained a relatively stable success all across the globe, it has always been the target of many lawsuits and similar issues from government entities. These problems, originated because of Uber not demanding its numerous drivers to operate following the laws that exist in each country to legally be a commercial driver of any sort of vehicle. After Uber’s foundation in March 2009, the company quickly expanded, but with its growth in popularity and overall size, problems began to surface, these escalated to the point of authorities raiding the company’s offices in various countries to find evidence of any illegal affairs regarding driver licences and tax money. Today, yet another major case involving Uber has taken a new major step, one that could hurt the company in a serious way. A United States District Judge in San Fransisco, has just approved a lawsuit to continue as class action. The lawsuit states that Uber drivers are entitled to being considered formal employees, after the company argued that the drivers are just “independent contractors” and not a part of Uber itself.
The main goal of the lawsuit is to show how Uber is violating the state’s labor laws for not reimbursing the drivers for the different driving expenses, including gas and any maintenance their car might need. The lawsuit also addresses how Uber doesn’t tip its drivers adequately, which should be a part of being considered a full employee. This new decision by the US District Judge is one of the biggest and most harmful moves against Uber, as it marks an end to the company’s most powerful argument when defending itself from accusations of not demanding any kind of commercial driver’s licence. Uber will also have to give its new “employees” all of the benefits that come with being an official part of the company.
Uber will no longer be able call its drivers “independent contractors” in California, as in a near future they will most likely be formal employees. The lawsuit will now continue as class action, which means that the case will now be investigated by a jury. The next step in the lawsuit would be that it is approved and more states, including California Uber drivers will be a complete part of the company, which will ultimately result in a huge financial damage for Uber.