It can’t be easy being an in-house lawyer at San Francisco-based Uber right now. The ride-sharing company has achieved financial success with its approach to facilitating transportation using software and smartphones. But Uber also has drawn its share of public controversy and extensive legal troubles. Lawsuits against the company range from allegations that Uber cars don’t have the right to work in such cities as New York and Brussels, to employment-law suits that question the company’s decision to classify its drivers as independent contractors.
The most recent ruling against Uber comes from California, where the state labor commissioner recently held, in a ruling that is nonbinding but will likely be parsed extensively by potential plaintiffs, that a driver picking up customers for Uber was misclassified when the company deemed her an independent contractor. In addition to being another setback, the decision, which Uber quickly appealed, deals with important questions over who is a bona fide employee in an economy where the tech-driven and on-demand nature of services has to some degree changed the nature of classification criteria.
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