loader
Page is loading...
Uber

Philadelphia U. S. District Court Determines Uber Drivers Are Independent Contractors


On the heels of a San Francisco U.S. Magistrate Judge’s February 2018 ruling in Lawson v. Grubhub Inc. that Grubhub food delivery workers are independent contractors, Judge Michael Baylson of the U.S. District Court for the Eastern District of Pennsylvania has held that Uber limousine drivers are likewise independent contractors under federal law.

This is the first ruling regarding the classification of Uber drivers under federal law and it is surely to have a large impact on the ride-sharing industry. The Philadelphia case, Razak v. Uber Techs., Inc., was filed in February 2016. The plaintiffs, seeking to represent all drivers in Philadelphia for Uber’s limousine service, UberBLACK, argued that Uber failed to pay them overtime and minimum wage in violation of the Fair Labor Standards Act (FLSA).

The FLSA sets minimum wage, overtime and recordkeeping standards and only applies to employees, not independent contractors. Judge Baylson held that Uber does not exercise enough control over its limo service drivers for them to be deemed employees under the FLSA. The drivers have the flexibility to work when they want to, where they want to and are free to tend to personal matters in between rides.

To date, the majority of the cases involving Uber drivers’ classification have been sent to arbitration. However Razak deals with plaintiffs who opted out of signing the company’s arbitration agreement; as a result, this is the first federal court to deliberate whether Uber drivers are accurately classified as independent contractors. This decision, like the Grubhub decision, will have wide application and is setting precedent for employee classification for the entire ride-sharing industry. The case is Razak v. Uber Technologies Inc., U.S. District Court for the Eastern District of Pennsylvania, Case No. 2:16-cv-00573.


LEAVE YOUR COMMENT

RELATED ARTICLES

California Truckers Drive Challenge to Dynamex and AB 5

November 18, 2019 | Currents - Employment Law, Employment Lessons

No E For Effort: FLSA Conditional Certification Fails Without Supporting Evidence

October 23, 2019 | Currents - Employment Law, Fair Labor Standards Act

Café Managers’ Second Attempt At Conditional Certification Fails

October 22, 2019 | Currents - Employment Law, Fair Labor Standards Act

No Right, Just Rules: Court Lacks Jurisdiction Over Steakhouse Managers’ Claims

October 3, 2019 | Currents - Employment Law, Fair Labor Standards Act

The FLSA Protects Colorado’s Recreational Cannabis Workers

September 25, 2019 | Currents - Employment Law, Fair Labor Standards Act

Subscribe

Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
RELATED TOPICS
FLSA
Grubhub
Independent Contractor
Uber
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.