Employee or Independent Contractor?

Uber, Lyft drivers are employees, says California regulator

From Reuters, Akanksha Rana, and Tina Bellon report that the California Public Utilities Commission (CPUC) determined that drivers for Uber and Lyft are employees. Akanksha and Tina write:

(Reuters) – Drivers working for ride-hailing services such as Uber Technologies Inc and Lyft Inc will be considered employees under California’s new gig worker law, the state’s leading industry regulator said on Thursday.

The decision, by the California Public Utilities Commission (CPUC), which regulates ride-hailing companies across the state, comes six months after a state law took effect that makes it tougher for companies to classify workers as contractors rather than employees. The latter designation exempts them from paying for overtime, healthcare and workers’ compensation.

The CPUC in an order on Thursday said it had to enforce state law, determining that drivers for transportation network companies (TNCs), the industry term for ride-hailing operators, would be considered employees going forward.

“For now, TNC drivers are presumed to be employees and the Commission must ensure that TNCs comply with those requirements that are applicable to the employees of an entity subject to the Commission’s jurisdiction,” the commission said in the document here

The companies have said in the past their drivers were properly classified as independent contractors, adding that the majority of them would not want to be considered employees, cherishing the flexibility of on-demand work…

Read the full story at Uber, Lyft drivers are employees, says California regulator – Reuters

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