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Uber facing business litigation over employee classification

On Behalf of | Sep 17, 2019 | Business Litigation

The rideshare business is thriving, with many people opting to pay for drivers as needed instead of using public transportation or paying for taxis. Other times, Oregon readers may prefer to call for an Uber instead of driving themselves on a night out. Despite its popularity and continued growth, Uber is facing business litigation as a result of the way the company currently classifies its drivers. 

Drivers who work for the company are classified as contract employees. Many of them believe they are improperly classified, which means they are not eligible for things such as overtime pay, minimum wage and more. The state in which this lawsuit was filed recently passed laws that seemingly will require the company to reclassify drivers, but the company says they will not have to. They plan to fight the lawsuit in court.

How an employee is classified has a direct impact on how he or she is paid. It is often difficult to determine the proper category for a job, especially in an industry that offers service from contracted workers on an as-needed basis. Legal experts that understand this case say that Uber is not likely to succeed in court, which could mean the company will end up losing millions in compensation and back pay.

If an Oregon employee believes he or she is the victim of improper classification, that individual has the right to speak up and take legal action. However, a business also has the right to to defend its interests against any type of business litigation and accusations. A company facing this type of legal difficulty will find it beneficial to speak with an experienced attorney about how to defend against these types of claims.