Yesterday, the U.S. District Court in San Francisco certified a class of drivers in O’Connor, et al v. Uber Technologies, Inc., allowing them to continue on with their suit against Uber, the ride sharing service that has revolutionized the industry.
In today's “sharing economy” where businesses have taken shared access to products or services, and the freelance business model to new heights, the outcome of the case can have far reaching implications. Companies like Uber and Air B&B have grown exponentially in the past few years, with Uber being valued by some at $50 billion.
The recent case, which is at the beginning stages, addresses the issue of whether the drivers have been misclassified as independent contractors versus employees. If the drivers were indeed misclassified, and deemed employees, they could potentially be entitled to back pay, benefits, and reimbursable expenses.
The outcome of this case could mean a shift in the way the business model works, and broader implications on how the “sharing economy” businesses are structured and their profit margins. Moreover, it could impact the flexibility of the contractors in this new economy. In many cases, the contractors, or in this case drivers, prefer the flexibility of being an independent contractor allowing them to work hours they choose, multiple part time jobs, or in project based fields.
This case could take years to resolve, but how the court classifies these workers could extend well beyond the ride sharing service, and definitely makes it a case to watch.
Having worked with Zana for 10 years, I can attest to her professionalism, her pragmatism, and most importantly, her integrity. I always get sound, thoughtful advice and guidance. From routine filings & updates to the highly unexpected, Zana’s there to help, always responding quickly and […]
Read MoreWe highly recommend Dalton & Tomich! As a start-up firm that has rapidly grown across the country in under 5 years, Dalton & Tomich has been integral to our sound, credible, and excellent in standard infrastructure. As we’ve scaled, Zana has been right by our […]
Read MoreAs a professional photographer in the wedding industry, reliable communication is very important to me. Noel was very knowledgeable and quick to respond to all of my questions and not just that, he also gave me suggestions when reviewing and updating my contract. The entire […]
Read MoreZana’s expert guidance has helped us to move forward with clarity and confidence in our business endeavors. She helped us create a new business entity, and a few years later to navigate a tricky buyout—all with a clear path forward for business growth. Her calm […]
Read MoreNoel’s guidance was much appreciated when redrafting my client contract. He was very professional, respectful of my time and potential costs, and was sincere with his advice. I trusted that he had the highest good for my business in mind. I will seek out his […]
Read MoreZana’s expertise in employee law has helped us refine and build a stronger operations and hiring strategy at my company. As a business owner of a small and fast growing company, I very much appreciate Zana’s ability to always step into any situation quickly and […]
Read More