Jon Weinberg is a student at Harvard Law School.
In a major ruling with widespread implications for gig economy workers in the United Kingdom, an employment tribunal in London found that Uber drivers are not self-employed independent contractors, but rather Uber workers. The Guardian reports that “the case could open up the technology firm to claims from all of its 40,000 drivers in the UK, and force other companies in the so-called gig economy to review the way that they are employing staff.” Drivers will now be entitled to the national living wage, as well as paid holidays and paid rest breaks. Uber is likely to appeal the ruling.
In the United States, Uber has again been sued by drivers in New York who accuse Uber of wage theft. Bloomberg BNA notes that the drivers originally filed a class action alleging violations of the Fair Labor Standards Act and New York Labor Law, but now four of the drivers “who haven’t opted out of arbitration agreements with Uber, will contend the National Labor Relations Act bars arbitration pacts containing class action waivers” as well as the same substantive FLSA and NY Labor Law violations. As a result, “the six drivers in the original lawsuit who opted out of arbitration can more quickly move for court consideration of their ‘wage theft’ claims.” The drivers contend that “Uber’s pay practices mean many drivers working more than eight hours a shift earn less than minimum wage and receive no overtime pay.”
Meanwhile, Uber is moving ahead with the formation of company-funded quasi-unions which will purport to represent drivers and yet promise not to strike. According to Josh Eidelson of Bloomberg Businessweek, the Uber-funded Independent Drivers Guild was launched in partnership with the International Association of Machinists and Aerospace Workers (IAM) and claims to represent all 40,000+ Uber divers in New York City in arbitration hearings challenging driver deactivation, and also offers “such perks as discounted legal assistance and chances to air grievances at monthly meetings with Uber officials.” However, the IDG wasn’t voted for by drivers and has no collective bargaining agreement, and some argue it represents an effort by Uber to resist true unionization.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
March 13
Republican Senators urge changes on OSHA heat standard; OpenAI and building trades announce partnership on data center construction; forced labor investigations could lead to new tariffs
March 12
EPA terminates contract with second-largest union; Florida advances bill restricting public sector unions; Trump administration seeks Supreme Court assistance in TPS termination.
March 11
The partial government shutdown results in TSA agents losing their first full paycheck; the Fifth Circuit upholds the certification of a class of former United Airline workers who were placed on unpaid leave for declining to receive the COVID-19 vaccine for religious reasons during the pandemic; and an academic group files a lawsuit against the State Department over a policy that revokes and denies visas to noncitizens for their work in fact-checking and content moderation.
March 10
Court rules Kari Lake unlawfully led USAGM, voiding mass layoffs; Florida Senate passes bill tightening union recertification rules; Fifth Circuit revives whistleblower suit against Lockheed Martin.
March 9
6th Circuit rejects Cemex, Board may overrule precedents with two members.
March 8
In today’s news and commentary, a weak jobs report, the NIH decides it will no longer recognize a research fellows’ union, and WNBA contract talks continue to stall as season approaches. On Friday, the Labor Department reported that employers cut 92,000 jobs in February while the unemployment rate rose slightly to 4.4 percent. A loss […]