Jon Weinberg is a student at Harvard Law School.
A labor court judge in the state of Minas Gerais, Brazil has found that an Uber driver there is an employee of the company, taking the debate over the classification of drivers to another country. The Brazilian newspaper Zero Hora reports that the decision is the first in Brazil to recognize Uber as an employer of drivers. According to Reuters, the judge “ordered Uber to pay one driver around 30,000 reais ($10,000) in compensation for overtime, night shifts, holidays and expenses such as gasoline, water and candy for passengers.” Uber announced that it will appeal the decision. The ruling only applies to a single driver, but could open the door to more challenges.
Brazilian news portal G1 notes that the judge applied a multi-factor test for employment status under Brazilian law. Key factors included that a) users are assigned a driver by Uber, unable to select from options; b) Uber (not the passenger) pays drivers at the end of each week after withdrawing a percentage, thus going beyond simple mediation of passenger-driver business; c) transport is Uber’s primary business, as partially evidenced by its investment in automobiles vehicles; and d) Uber drivers are submissive to the company, forced to comply with strict rules in order to drive for the company.
Zero Hora also emphasized that the judge found that drivers were encouraged to drive regularly despite flexibility, and that Uber engaged in a hiring process by approving drivers.
For its part, per Reuters, Uber “said in a statement that it was appealing the decision, citing a contradictory ruling by another labor judge in Minas Gerais two weeks ago.” Uber claims that “drivers are free to set their own hours, cancel or pass on trips and use competing apps, making them service providers rather than employees.”
Notably, per Zero Hora, the judge relied in part on a recent finding by a British employment tribunal that Uber drivers are not self-employed independent contractors, but rather Uber workers. The judge also commented on the “uberization” of the economy and the need to protect the rights and dignity of workers in the new economy.
With the ruling, Uber now faces appellate legal challenges to its classification of drivers as independent contractors on three continents and counting.
Daily News & Commentary
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July 3
Unions seek a preliminary injunction to prevent USDA downsizing; the D.C. District Court issues a preliminary injunction against new student loan regulations; Matt Bruenig releases an analysis of Starbucks’ ongoing legal battle against Starbucks Workers United.
July 2
First Circuit denies federal worker unions’ mandamus petition; federal court denies preliminary injunction against new union reporting rule; House introduces the Securing Agriculture’s Workforce Act.
July 1
Trump nominates Keith Sonderling as Labor Secretary; DOL eliminates disparate-impact liability from Title VI regulations; OPM finalizes rule allowing suitability-based removal of federal employees for post-appointment conduct.
June 30
SCOTUS ends removal protections for agencies; staff at NYC cocktail bar vote to unionize.
June 29
In today’s News and Commentary, student-athletes file a class action suit challenging the NCAA’s new Age-Based Rule, a federal judge declines to issue a preliminary injunction against FEMA’s reduction in force but expedites proceedings, and Gavin Newsom opposes California’s proposed billionaire tax in favor of a federal approach. On Thursday, DeJuan Campbell, at basketball player […]
June 28
Philadelphia utility workers announce July 4 strike; national parks workers vote to unionize; Michigan considers “right to disconnect” bill.