Uber doesn’t want its drivers to be employees — here’s why that matters

Uber is fighting against drivers who want to be categorized as employees — and whether it succeeds could have major implications for the gig economy.

In March 2019, for example, Uber said it reached a preliminary settlement in two class-action cases. The company agreed to pay $20 million to drivers who contracted with Uber in California and Massachusetts but with whom it had not entered into arbitration agreements, and who sought damages against Uber “based on independent contractor misclassification, among other claims,” according to the IPO document.Uber has been battling the contractor versus employee court cases in multiple countries.

Most employment rights do not extend to independent contractors. For instance, companies are not required to pay independent contractors a minimum wage or overtime, provide them health insurance or give them regularly scheduled breaks. But even these seemingly beneficial aspects to working for a company like Uber have their downsides. One study co-conducted by Uber found that drivers’ wages don’t really change regardless of whether fares are hiked or lowered because of how easily drivers and riders alike can opt out of using the app throughout the day.

Trust me uber employees you want to be private contractors.

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