The kicker was that an independent contractor, who gets a form I-9 as opposed to a traditional W-2, would not have been entitled to most of those things. The Florida and IL cases seek to cover a nationwide class, although the latter excludes California and MA because of the pending settlement in those states. The spokesman added that the employees earn “a fixed hourly wage, and lose the ability to drive with other ridesharing apps as well as the personal flexibility they most value”, Tech Crunch reported.
Other possible implications of the move are hard to pin down this early in the process, but it would be no surprise to see this pushing Uber to double down on their self-driving auto efforts, implement additional restrictions or even pull out of some less lucrative markets entirely.
The second lawsuit filed in the U.S. District Court for Northern District of Illinois, Chicago division against Uber and CEO Travis Kalanick, also aims to represent Uber drivers across the U.S., other than those in MA and Illinois. At this time, no court dates concerning the lawsuit have been set.
Uber claims it is a lead-generation platform for connecting drivers with riders, but drivers are actually employees within the meaning of the Fair Labor Standards Act as they are required to follow detailed requirements imposed by Uber, are rated by riders, and can be terminated based on their failure to meet requirements, according to the complaint.
The Illinois and Florida lawsuits are the first of its kind following the former lawsuits. In those two cases, the settlements determined that Uber drivers in those states will remain independent contractors.
As part of the proposed settlement, the company recently changed some of its policies to offer drivers more transparency when it comes to driver termination.
The driver can also leave the passenger altogether if the customer is not quick. Uber drivers would have to pay $10, plus a “per ride fee” of 20 cents.
Taxi drivers argue that the proposed rules still give Uber an unfair advantage. “Uber had to anticipate that this would have occurred”.