There has been a growing debate between Uber and its drivers at to whether they are employees or independent contractors. The company would like to have all drivers classified as independent contractors. This would mean they do not have to pay the workers any benefits, they do not have to pay overtime wages, they do not have to pay any portion of a worker’s federal employment tax, and they do not have to pay workers’ compensation if a driver is injured while driving for them.
In addition to having to pay less money, the company can also claim it is not liable if an Uber driver is held responsible for a car accident that results in personal injury. There is a long-standing provision in our legal system, which holds employers liable for negligent conduct committed by their employees in many situations. However, if the worker is an independent contractor, there is generally no liability on behalf of the company paying the at-fault contractor. Continue Reading ›