An NLRB memo made public this week defines Uber drivers as independent contractors, not employees.
Uber has fought tooth-and-nail to keep drivers classified as such, to avoid paying things like overtime and other benefits.
We reached out to drivers to see how they feel about the news. Few were surprised, and many see it as yet another slight from the ride-hailing giant.
Uber drivers will officially be classified as independent contractors — not employees — by the United States government.
That decision, a decisive win for Uber in its fight to avoid paying benefits like overtime and sick leave to its driver partners, was made public on Tuesday in an advisory memo from the National Labor Relations Board’s general counsel dates April 16,
According to Reuters, the memo said Uber drivers are not employees because they set their own hours, own their cars and are free to work for the company’s competitors. Therefore, they cannot be considered employees under federal labor law.
It’s a decisive win for Uber, which warned in its IPO documents that being forced to pay minimum wages, overtime, and other expenses that come with full-fledged employees could seriously damage its business. For some drivers, though, it’s another blow to their argument that the classification should be switched.
(Last names have been omitted to protect the privacy of drivers, but Business Insider has confirmed their authenticity.)
“The laws need to be rewritten for independent contractors,” David, a driver in Sacramento, California, said in an interview. “Being an independent contractor allows us the freedom to drive whenever we want and refuse rides to passengers who put our safety and the safety of our personal vehicles at risk. The decision by the NLRB only really impacts those who are “lifers” in the ridesharing business, those who rely on …read more
Source:: Business Insider