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A debate is ongoing on whether the factors of the big economy for Uber and Lyft are contractors or independent employees, who would be eligible for benefits. The National Labor Relations Commission recently ruled that Uber drivers, particularly between 2015 and 2016, were independent contractors, reported Bloomberg Law.
"The almost total control of drivers on their cars, their hours of work and their log-in locations, as well as their freedom to work for Uber's competitors, offered them an important entrepreneurial opportunity," says memo. "Every day, at any free moment, UberX drivers can decide how best to serve their business goals: by completing driving requests through the app, working for a shared carpool service or by pursuing a new adventure. Rising prices and other financial incentives used by Uber to meet the demand of motorcyclists not only reflect Uber's "maverick" approach, but also represent an additional entrepreneurial opportunity for drivers. "
This decision is consistent with a similar decision of the Ministry of Labor, which determined that workers in the large economy are independent contractors and therefore do not qualify for minimum wage or overtime pay.
However, this decision does not mean that there will be no state-wide lawsuits against people like Uber and Lyft regarding job classification. This means that the NLRB will maintain the position that Uber drivers are not eligible for federal unionization protections. Drivers will also have more difficulty filing unfair labor practice charges at the federal level.
The release of this decision comes just days after Uber's dark debut on the NYSE. Before the IPO, drivers demonstrated outside the company's headquarters in San Francisco, seeking better pay, benefits, transparent policies and a voice. Drivers have also started a strike around the world with similar claims.
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