Uber drivers are employees not contractors according to the California Labour Commission. The CLC ruled out that Barbara Berwick, a San Francisco based driver, to be considered as an Uber employee not as a contractor. The commissioner said that she must be paid $4,100 to cover the costs of vehicle mileage and tolls. It could be extra cost for Uber in terms of paying social security and unemployment insurance to the drivers.
Uber finally facing a rough time in California where other drivers will also demand reimbursements for costs of mileage and tolls. In East Hampton, New York where Uber had to completely shut down its operations because of strict local taxi laws, fearing a criminal convictions for its 23 drivers who were operating illegally in the area. If feels like finally the authorities are putting a leash on Uber which was spearing like a monster and affecting local taxi and limousine businesses.
Its a good news for Uber drivers who work really hard, driving 12 to 16 hours a day and barely making $2500 to $3000 dollars a month. The ruling by California Labour Commission will also affect other companies like Lyft and Instacart because they follow the same business model as Uber, keeping drivers as contractors not employees.