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Uber’s labor fight spills over into its food delivery service

Uber’s labor fight spills over into its food delivery service

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UberEats sued for classifying workers as freelancers

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Uber’s unresolved fight with its drivers over their status as independent contractors is now affecting one of the ride-hailing company’s popular side projects: UberEats. A class action lawsuit was filed in Tampa, Florida, yesterday alleging that Uber’s food delivery service erroneously classifies its couriers as freelancers, and demands they be granted benefits typically afforded to full-time employees.

The lawsuit claims that UberEats delivery workers suffer “negative tax implications,” and are deprived benefits such as a minimum wage, workers’ compensation insurance, unemployment insurance, disability insurance, and social security. The plaintiff, a Tampa-based UberEats courier, is demanding damages equal to unpaid back wages.

“willfully misclassifying its delivery partners as independent contractors”

The lawsuit “challenges UberEats’ policy uniform policy of willfully misclassifying its delivery partners as independent contractors,” the complaint reads, “when, in fact, each such delivery partner is and/or was an employee of UberEats.”

UberEats launched as a standalone app in major cities around the world in early 2016. Today it operates in 43 cities across the globe. UberEats has been sued for stiffing delivery workers their tips, but this is the first known lawsuit challenging the app’s classification of its couriers.

The lawsuit has not been granted class action status, but the plaintiff’s attorneys claim in court documents that their class could include “over 1,000 persons.” It’s unclear how far this particular lawsuit will go, or whether Florida judges will allow the plaintiff’s attorneys to begin looking for other delivery workers to join the complaint. However, it is a sign that Uber can’t expect its labor problems to go away in 2017.

Uber is still trying to negotiate a settlement with a class of drivers that sued the ride-hailing giant last year over their classification as independent contractors. A judge in California rejected an earlier settlement of $100 million, calling the amount insufficient. Last week, Uber agreed to pay $20 million to settle a complaint by the Federal Trade Commission that it misled drivers about earnings and vehicle financing.

The attorney for plaintiff in the UberEats suit was not immediately available for comment, nor did a spokesperson for Uber respond to questions.

UberEats misclassification by ahawkins8223 on Scribd