Out of all the ways to get from place A to B in today’s world, Uber and Lyft are amongst the most popular. Although these ride sharing platforms have brought huge benefits to the ease and affordability of transportation, they are accompanied by the increased occurrence of accidents, kidnappings, and dangerous situations for both drivers and riders. Until now, Uber and Lyft employees were considered contractors which allowed both companies to avoid any liability for the actions of their drivers. Last week, a California judge ruled that given the nature of Uber/Lyft drivers’ job responsibilities, they should be classified as employees and thus receive the proper benefits and rights. This means that in California, if a driver is in danger or gets into an automobile accident and suffers from an injury, they are covered under workers’ compensation. 

Employee vs. Contractor

An independent contractor is an individual who is hired for a specific job over a finite period of time. Contractors are not eligible for the same benefits and protections as traditional employees and companies generally have limited liability over the actions of the contactor. On the other hand, employees are protected under OSHA and are granted rights such as workers’ compensation in case of a workplace injury. Employers are held to strict standards when it comes to ensuring the safety and well-being of their employees. Although it varies from state to state, most jurisdictions enforce similar laws involving workplace safety. In Georgia, employers with three or more employees are required to have workers’ compensation insurance. Contract work can provide flexibility and autonomy, however, with an increase in work-related injuries and incidents, rideshare drivers should be considered employees to receive various protections that can be essential in the case of an unexpected event.

Industry Changes 

If the decision to mandate that Uber and Lyft classify their drivers as employees is not overturned, there are several benefits that these drivers will be entitled to receive including: 

• Health insurance
• Paid sick leave
• Minimum wage
• Overtime pay
• Workers’ compensation 

This ruling shines a light on the issue of neglected contract workers, especially in industries where workers are put in danger. If you are classified as an independent contractor and believe that you should be granted employee rights and benefits, contact Poirier Law Firm today. 

Source: https://thehill.com/policy/technology/511391-judge-rules-uber-lyft-must-classify-drivers-as-employees