In-House Counsel

Uber and the Heightened Scrutiny of Independent Contractor Status

, The Legal Intelligencer


You might have read that in early September a federal court in San Francisco granted class action status in a labor lawsuit involving the question of whether Uber drivers are independent contractors or employees. This legal inquiry may jeopardize the viability of sharing-economy businesses that are built with the purpose of matching individuals who provide services with those who need that service via the Internet.

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What's being said

  • Bill

    Good legal analyses in this article, but it‘s very wrong when it says: "The success of sharing businesses exists largely because they do not have to concern themselves with the FLSA ...... ".That‘s not what the success of these businesses is based on. The success is based on new, disruptive business models using new technologies to revolutionize efficiency ..... with the cost savings from avoiding FLSA, etc a minimal part of their success. The same incorrect argument was made many years ago when the IRS cracked down on freelance 1099 contractors in the IT industry. Companies just changed the comp structure to conform to the new rules, and contracting continued to grow, via the use of W2 hourly workers. Uber will figure out similar legal workarounds and will continue to thrive.

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