back to article Super Cali grabs its big stick, beats Uber 'cos it's odious

Add California's Employment Development Department (EDD) to the list of groups that think Uber drivers are employees and not independent contractors, as the ride-sharer suggests. The EDD has issued a ruling [PDF] that a former Uber driver met the criteria for an employee and was therefore able to collect unemployment benefits …

  1. Lt.Kije

    Nice try on the headline

    Bit of a stretch tho'

  2. Anonymous Coward
    Anonymous Coward

    Still it provides a pretty strong test fort the employee/contractor status, as it noted that truly independent contractors would have independent business licenses and would operate with the hiring business on a B-to-B basis. Meaning by that definition, for Uber to class the drivers as "contractors," each driver would have to have been an independent taxi driver before joining Uber. That would mean Uber faces an uphill battle.

    1. Anonymous Coward
      Anonymous Coward

      It also means there will be a lot more work required around taxes, as Uber will have to withhold and pay money for FICA/SS taxes, which will reduce driver's incomes.

      For someone who drives 5-10 hours a week it may be easier to argue they are a contractor, but once it becomes your only job and you weren't a taxi driver previously...

      1. Charles 9

        "It also means there will be a lot more work required around taxes, as Uber will have to withhold and pay money for FICA/SS taxes, which will reduce driver's incomes."

        Uncle Sam gets you either way. As a "contractor" or self-run business, you have to declare your earnings anyway as income and probably pay estimated taxes or risk an audit. Withholding simply helps to make sure his share's already collected.

    2. Yet Another Anonymous coward Silver badge

      So everybody who sells stuff on ebay without their own corporation is an employee of ebay?

      1. Anonymous Coward
        Anonymous Coward

        Last I checked, private peddling is tolerated for small, infrequent occasions. Beyond a certain amount, though, it has to be declared for tax purposes.

      2. User McUser

        So everybody who sells stuff on ebay without their own corporation is an employee of ebay?

        No more than listing an item for sale in the Classified Ads section of your local paper makes you an employee of that newspaper (as in, not at all.)

        eBay does not tell you what to sell, who to sell it to, nor what forms of payments you can accept or how those payments are processed; they just rent you a bit of space on their website to advertise your wares. Conversely, Uber requires its so-called contractors to "accept trip assignments handed out by Uber, and have ride fares processed and paid by Uber."

        1. Yet Another Anonymous coward Silver badge

          That sounds very close to what the Apple app-store demands or even Amazon's deal with authors for ebooks.

  3. Frumious Bandersnatch

    Ah, America (USA)

    No representin' without a taxin'

  4. Anonymous Coward
    Anonymous Coward

    I don't use taxis

    But I won't use Uber.

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