Latest on Uber: Are the Drivers Employees or Independent Contractors?

South CarolinaFrom JD Supra, Collins & Lacy discuss whether Uber drivers are employees or independent contractors in South Carolina.  They write:

“Of course, Uber has had to deal with a unique set of issues recently here in South Carolina. In January 2015, the South Carolina Public Service Commission ordered the ride-sharing company to cease operation in the state. Last month, after public and political backlash, the Commission granted Uber a temporary license to operate which was to expire June 30, 2015. However, Governor Nikki Haley signed a bill on June 24, 2015, allowing Uber to operate if licensed by the South Carolina Office of Regulatory Staff.

Although not precedential, the California Labor Commission’s ruling is interesting, even for other Uber cases before that same Commission, as the ruling is only applicable to that particular driver. When determining whether an individual is an employee or an independent contractor, California, like South Carolina, looks to a putative employer’s control over the employee. In South Carolina, courts look to the purported employer’s right to control the performance of the work. Specifically, South Carolina courts looks to the following four factors:

  1. direct evidence of the right to, or exercise of, control;
  2. furnishing of equipment;
  3. method of payment;
  4. right to fire.

Why is the classification of employee vs. independent contractor important to South Carolina employers? For one thing, employees enjoy significant state and federal rights that independent contractors do not. South Carolina employer’s must provide workers’ compensation insurance and pay unemployment insurance to the South Carolina Department of Employment and Workforce (assuming the employer meets the minimum threshold requirements)….”

Read the full story at Latest on Uber: Are the Drivers Employees or Independent Contractors?

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