Should Uber cover its Uber Eats drivers’ work-related expenses?
The California Supreme Court ruled on Monday that Uber Eats driver Erik Adolph never surrendered his rights to sue Uber under California state law. Even though Uber’s driver agreement states that drivers and deliveries partners must bring grievances to private arbitration and not small claims court. This is a major blow to gig companies in the U.S. but a big win for labor advocates.
Adolph’s lawsuit, which claims that Uber misclassified Uber Eats drivers as independent contractors instead of company employees, was initially filed back in October 2019. Under California state law and Labor Code, company employees must be reimbursed for work related expenses and paid properly under minimum wage and overtime rules. Such as, in Adolph’s case, fuel and vehicle maintenance, minimum hourly pay protection, and proper overtime pay.
Uber’s lawyer Theane Evangelis stated that Uber is considering appealing the California ruling since it conflicts with a 2022 U.S. Supreme Court ruling and undermines a federal law that requires enforcement of valid arbitration agreements. So, this case is still far from being settled.
Win or lose, however, labor advocates and state agencies appear that they will never stop litigating gig tech companies until all of their independent contractors are considered company employees. Even if it meant the end of the gig economy as we know it - rideshare and food delivery prices would increase three-fold while driver pay would decrease with daily and weekly hour limitations forcing many drivers to seek full-time employment elsewhere.
So, if this isn’t good for the consumer or driver, why do labor advocates and state agencies continue litigating the core structure of gig tech companies: classifying their drivers and delivery partners as independent contractors? Maybe the answer lies in the money that both lawyers and state agencies would receive if drivers were able to sue gig tech companies for employment law violations.
For example, if drivers were considered employees and able to sue Uber, they would only keep 25% of the money they would win in a lawsuit while the rest goes to fund state agencies that enforce labor laws. Additionally, class action lawsuits bring in a lot of settlement cash, but plaintiffs hardly receive a fair share after lawyers take their cut. In short, follow the money.
As a gig worker - both rideshare and delivery driver, I do not wish to be classified as an employee. I enjoy my privileges and freedom of being an independent contractor. It’s one of the main reasons I left the corporate world. However, I do wish for some labor protections against these gig companies: unfair deactivation and pay transparency.
Can a hybrid model between independent contractor and company employee ever exist? Or will labor advocates, state agencies, and their attorneys keep this from happening? Only time will tell, but I feel that we will see finally see the direction its heading within the next few years. Either way, the gig economy is heading for massive change.
