UBER CASE HIGHLIGHTS EMPLOYEE CLASSIFICATION ENFORCEMENT

Uber, the transportation network company, will pay $4,152.20 in reimbursable business expenses and interest to one of its drivers due to its misclassification of the driver as an independent contractor after the California Labor Commission ruled the driver was, in fact, an employee. Uber has since appealed the decision.

The case highlights the recent focus and enforcement of proper employee classification. Whether you employ drivers like Uber, or have a number of outside salespeople you consider to be independent contractors, now is the time to evaluate those positions in light of recent regulatory activity.

Large class action lawsuits against Uber and other companies are getting a fair amount of media attention. This could cause some independent contractors to want to take a look at how they are classified with your company. You should stay abreast of the developments in this area and continually evaluate whether your worker classifications are correct.