Author Topic: Uber Lawsuit Contends Company Saves Money By Misclassifying Drivers  (Read 119 times)


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Uber Technologies is facing a lawsuit that claims the ride-hailing company is misclassifying drivers in California as independent contractors in order to save money.

According to a report in Bloomberg citing the lawsuit, the complaint alleges that Uber is able to avoid paying $9.07 an hour in expenses and benefits to drivers that they would get if they were treated as employees. The misclassification amounts to about $500 million, according to the lawsuit filed by a car delivery service, reported Bloomberg. The lawsuit contends Uber uses illegal labor savings to price the rides under what they actually cost so it can steal customers from rivals that treat drivers as employees.