Monthly Archives: June 2015

THE CALIFORNIA LABOR COMMISSIONER FINDS UBER DRIVERS TO BE EMPLOYEES

On June 3, 2016, the Labor Commissioner of the State of California issued a Decision finding that Uber Technologies is the employer of the “Transportation Providers” with whom it contracts to use its software system and who provide transportation to Uber’s customers.  The Commissioner analyzed the factors set forth by the California Supreme Court in S.G. Borella & Sons, Inc. v. Dept. of Industrial Relations (1989) 48 Cal.3d 341 with a focus on the finding that the drivers provide services integral to the business of Uber.  While the Commissioner found control of the overall operation was exercised by Uber, she acknowledged that there was a minimal degree of control over the details of the work.  Nevertheless, given the statutes establishing a presumption of employment and the “modern tendency” to find employment when the individual is providing work that is integral to the regular business of the alleged employer, it was determined that the drivers are employees of Uber.  Uber filed a Notice of Appeal on June 16, 2015 in the California Superior Court.