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Uber, Lyft Rebuffed in Bids to Deem Drivers Independent Contractors

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10 years ago

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March 12, 2015

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Uber has started charging New Yorkers who use its e-hailing service to get yellow cabs a $2 booking fee. The fee is not applicable for the company's UberX service, which deploys black cabs. (Courtesy of Uber)

Uber has started charging New Yorkers who use its e-hailing service to get yellow cabs a $2 booking fee. (Courtesy of Uber)

(Reuters) – Ride-hailing apps Uber and Lyft failed to persuade separate U.S. judges on Wednesday to rule that their drivers are independent contractors instead of employees, in cases that have wide implications for Silicon Valley “sharing economy” firms.

U.S. District Judges Edward Chen and Vince Chhabria in San Francisco federal court said in two rulings that juries would have to determine the status of each companies’ drivers.

Uber and Lyft face separate lawsuits seeking class-action status in San Francisco, brought on behalf of drivers who contend they are employees and entitled to reimbursement for expenses, including gas and vehicle maintenance. The drivers currently pay those costs themselves.

An ultimate finding against the two biggest car-ride services could significantly raise their costs beyond the lawsuits’ scope and force them to pay Social Security, workers’ compensation, and unemployment insurance.

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Related Topics:cab companies Lyft ride sharing ride sharing apps taxi companies Uber

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Oakland Post: Week of June 4 – 10, 2025

The printed Weekly Edition of the Oakland Post: Week of June 4-10, 2025

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June 7, 2025

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Oakland Post: Week of May 28 – June 30, 2025

The printed Weekly Edition of the Oakland Post: Week of May 28 – June 3, 2025

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Oakland Post: Week of May 21 – 27, 2025

The printed Weekly Edition of the Oakland Post: Week of May 21 – 27, 2025

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May 25, 2025

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Oakland Unified School District’s Central Administrative Center and Board Room at the site of Cole School in West Oakland. Courtesy photo.

Oakland Unified School District’s Central Administrative Center and Board Room at the site of Cole School in West Oakland. Courtesy photo.

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The City of Oakland began sweeping their largest homeless encampment on E 12th St. Monday morning. Advocates claim that the city has not done its due diligence with providing ample resources or outreach for residents at the encampment. Photo by Magaly Muñoz.

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iStock.

iStock.

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Image courtesy The Richmond Standard.

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