Juries in California will decide whether or not Uber and Lyft drivers are independent contractors. According to a Bloomberg report, two judges in separate cases in San Francisco federal court ruled that the on-demand car services will need to make the case to juries as to why they shouldn’t offer their drivers minimum wage, reimbursement for expenses and other benefits, including workers’ comp. Both judges voiced skepticism in January when the companies made their case for their treatment of drivers as contractors rather than employees. Whatever the verdict, the decision will only apply to drivers in California, as the suit is grounded in California employment and gratuity laws, but additional litigation in other states in the event of a ruling in favor of Uber/Lyft employees could decimate the firms’ business models.
Read full coverage from Insurance Journal here.