By Tim Maytom
Ride-hailing app Uber is facing problems on both coasts of America today, with the news that the California Labor Commission has ruled that its drivers are employees rather than contractors, and reports that almost 500 of its cars have been seized in New York due to illegal pickups.
The decision in California comes following months of debate and legal challenges between Uber and its drivers. The company has always argued that it is “nothing more than a neutral technology platform” and that any drivers are contractors, rather than official employees.
The ruling means Uber will face higher costs in California due to requirements like Social Security contributions, workers’ compensation and unemployment insurance. It also opens the firm up to similar challenges in other states, as well as around the world.
The commission was ruling based on an appeal by Uber of a labor commissioner’s award of around $4,000 (£2,500) in expenses to a San Francisco-based driver, who filed a claim in September after working for as an Uber driver for just over two months in 2014.
Meanwhile, in New York, 496 cars have been seized from Uber drivers in the past month and a half for taking illegal street hails. …read more
Source:: Mobile App News