Over the past year, we’ve watched Uber go through a rollercoaster ride. It all started when drivers who at random points throughout the year exceeded a 30 hour work week, making them eligible for health care during that time period under the Affordable Care Act. Since then, Uber has been met with multiple lawsuits, most recently in May of this year when both Florida and Illinois moved to change how Uber drivers were classified.
The drama extended across those respective state lines, as major cities like New York and Boston and states like Texas, Indiana, California, and Massachusetts have also felt it. The latter two may see a staggering $100 million settlement amongst 385,000 drivers.
While health care is the major point for all, other benefits like overtime and expense reimbursement were thrown into the mix. The settlement would put an end to any releasing of Uber drivers without valid reason, with the drivers still classified as independent contractors. While America is still finding its footing in the burgeoning “gig” economy, Europe is also feeling the heat.
In the UK, Uber drivers are seeking reclassification, filing a claim to be filed as workers rather than contractors. This extends to Ireland, but only slightly as the country still favors taxis and chauffeurs, but Uber is inching into their frame of reference, already drumming up questions about future classification.
France has escalated the issue, as the social security authority (URSSAF) is already entangled in a legal dispute with Uber with regard to social security payments and the accusation that Uber willfully broke the law in employee classification just to duck certain legal rights for drivers.
In Europe, these disputes are stemming from what’s defined as “collaborative platforms,” where gigs are received through online and app services. It’s bigger than Uber, as housecleaning services and other taxi platforms are included, but the mobilization of independent contractors has the EU perplexed. In 2015, the revenue from these platforms amassed to $28 billion.
The verdict in Europe, however, is that despite being an independent contractor or self-employed, the workers were to be classified as employees for taxing as well as social insurance purposes. Further, when a company provides the equipment, it only extends the proof that the company is servicing an employee with tools for the trade. In contrast, when there is no equipment and the worker simply needs to show up, the classification issue is more of a grey area.
As America also adds to its own “collaborative platforms” with app-based services like housecleaning and dog walking, it certainly begs the question of how these platforms will handle their own health care battles once popularized and widespread as much as Uber.
