Employee Class Action Against Uber and Lyft in the Age-Old Independent Contractor vs Employee Debate

The app startups Uber and Lyft are each facing class action lawsuits that will have a huge impact on the future of their companies. The companies currently consider their drivers to be independent contractors. If the drivers win their lawsuit, they would be considered employees and entitled to significant amounts of back wages and compensation for expenses from the companies for which they drive.

Businesses constantly try to classify employees as independent contracts to avoid the expenses and responsibilities that come with being an employee. Independent contractors are not reimbursed for expenses or even guaranteed a minimum wage for their labor. They are also taxed at a higher rate for their earning than traditional employees. NYC employee misclassification attorneys say that expenses to independent contractors often add up to thousands of dollars each year. Employers retain the expenses they save from these misclassifications as profit.

These cases are won and lost in the courtroom. So much of winning one of these lawsuits comes down to whether your class action lawsuit attorney has the legal skill it takes to represent the class’ interests during hearings. The evidence and how it is presented to the court wins these cases because the rules of law for independent contractor misclassification lawsuits balance a number of subjective factors. Members of class action lawsuits should find the most skilled and experienced New York City employee misclassification attorneys in order to prevail in their lawsuit.

This case is expected to go to trial in the next year or so. The current business models of Uber and Lyft rely heavily upon classifying their employees and independent contractors. If either of them lose, they will have to pay out tens of millions of dollars in back pay and benefits to their drivers.

Schedule a free initial consultation with one of the NYC employee misclassification attorneys at Hepworth, Gershbaum & Roth, PLLC if you are classified as an independent contractor by your employer. We may be able to help you recover significant amounts of back pay and benefits. Call us at 212-545-1199 or contact us online to schedule an appointment.