The California Labor Commission has decided that the drivers are more employees at Uber than self-employed …
Uber would have clearly violated the Fair Labor Standards Act.
The nature and degree of control exercised by the « client » on the « supplier » is one of the criteria to look closely:
– who sets the amounts of remuneration and working hours?
– Who determines how the work is done?
– Is the supplier free to work for others and hired help?
An independent contractor usually works free from control by the employer (or any other person, including the employer’s clients).
Or Uber controls its prices, its methods, it provides its tools to the drivers.
Another criterion is the percentage of sales the customer represents in the total sales of the provider. Plus, we approach the 100% and more problematic it becomes.
Often Uber is the main or sole customer of driver …
This sentence could be a game changer for the whole model of the sharing economy, including for AirBnB and the hotel industry.
To be continued …