The California Labor Commission has ruled Uber drivers are employees and not independent contractors, Reuters reports.
The ruling has serious implications for Uber’s business model, since the company will now be required to offer its drivers benefits that meet the requirements of the Californian labor laws.
Based in San Francisco, Uber’s headquarters employs approximately 1,000+ people. Its product acts as a logistics software that connects drivers to riders, offers turn-by-turn directions and simplifies the transaction.
Although Uber does not hand-select its fleet of drivers, it promotes an open invitation to anyone aged 21 or older with a commercial driver’s license, a car (models 2000 or 2005 later, depending on the city) and presumably a clean driving record.
Counting drivers as employees would mean Uber would need to seriously scale down its number of drivers if it needs to provide benefits, pay social security and medicare taxes without going bankrupt.
This ruling officially transforms Uber into a transportation company than a software business. According to Reuters, Uber is appealing a labor commissioner award of about $4,000 in expenses to the driver.
Developing, please check back for updates.
from The Next Web » Insider http://ift.tt/1HTgVve
via IFTTT
0 commentaires:
Enregistrer un commentaire