http://www.sun-sentinel.com/local/browa ... story.htmlThe lawyer suing Uber and Lyft, seeking to force the on-demand app companies to classify their drivers as full-time employees, has filed similar complaints against Shyp, Washio and Postmates this week in San Francisco.
Cover story:Uber and Lyft's labor model is under threat
Video:Meet the woman who keeps Uber's lawyers up at night
More:Instacart converts some independent contractors to employees
Poll:Should Uber drivers be independent contractors or employees?
Shannon Liss-Riordan, a Boston lawyer with suits pending against Uber and Lyft in the Northern District Court of California, had also filed an earlier complaint against food-delivery startup Caviar.
BIZSPACE SPOTLIGHT
Property Spotlight: 327 & 333 East Alpine Ave SPONSOR LISTING
Property Spotlight: 327 & 333 East Alpine Ave
See All Bizspace Properties
San Francisco is ground zero for these labor cases against on-demand companies because many are headquartered in the city and there have been favorable rulings against companies classifying some of their workforce as independent contractors. The California Labor Commissioner has ruled that an ex-Uber driver in San Francisco, Barbara Ann Berwick, was an employee of the ride-hailing app company and not an independent contractor as Uber claims. Uber will appeal the decision in district court.
Last month, Fedex said it will pay $227 million to settle litigation after a federal appeals court in Oakland ruled last year that the delivery company short-changed 2,300 drivers in California on pay and benefits by improperly classifying them as independent contractors.
The court ruled the workers weren't independent contractors because Fedex controlled the manner in which the drivers did their jobs, including scheduling, appearance and equipment requirements. At Uber, drivers must pay for their fuel and the maintenance of their own vehicles, and the company handles monetary transactions. Uber also doesn't pay employment taxes and healthcare benefits for the drivers.
Liss-Riordan's clients that have worked at Shyp, Washio, Postmates and Caviar claim that these companies exercise the same control over their workers, particularly those involved in delivery, as in the Fedex and Uber cases.
FEATURED JOBS
Account Executive, Business Development, HCR Consultant, Leadership
Aflac
SAN FRANCISCO, CA
Accountant
KSSF Enterprises Ltd.
EUGENE, OR
Vice President and General Counsel to the University
University of Oregon
Post a JobSee All Jobs
"I continue to be amazed to see how many new companies recently have gotten the idea that it’s OK to classify their workforce as independent contractors when they are treating them as employees. For many of these companies, it’s not even a close question that the workers are employees under the law," Liss-Riordan said from her office in Boston. "The companies are setting rules and guidelines, and threatening termination when the workers don’t follow those rules.
"Of course, they have to do that – in order to provide the branded-quality service they are trying to sell to the public. It’s an inherent tension: they want to control their workers so they can provide a level of service that will grow their business, but they want to avoid labor costs, and shift the expenses of running a business to their workers," she said. "They can’t do both."
Two separate cases against Uber and its rival Lyft, brought by Liss-Riordan, will be heard by jury trials in August in San Francisco.
Liss-Riordan sought a class-action demand with the American Arbitration Association on June 29 on behalf of San Francisco couriers Yuchih Tang and Austin Wood, who have worked for Shyp since December.
The Shyp filing can be viewed here.
Shyp co-founder and CEO Kevin Gibbon said in a company blog today that the delivery company's couriers, who were independent contractors, will become employees. He said the shift wasn't made in response to the lawsuits against on-demand app companies. The couriers will now be covered by workers' compensation, their vehicle expenses will be paid for, and they will be covered by unemployment insurance, Social Security and Medicare. They will receive healthcare benefits depending on hours worked, Gibbon said.
This follows a move by grocery deliverer Instacart to convert some of its shoppers to part-time employees. Instacart CEO Apoorva Mehta said the decision wasn't motivated by looming regulatory challenges. He said treating workers as part-time employees would allow Instacart to offer better customer service.
"’I'm pleased to see that some companies are taking a step back and reversing this trend, and deciding to classify their workers properly as employees," Liss-Riordan said. "I hope more companies come to this conclusion and make these kinds of lawsuits unnecessary."
In the Washio complaint, Liss-Riordan is suing on behalf of former San Francisco driver Barry Taranto, and is seeking class-action status for all Washio drivers.
The Washio complaint, filed in Superior Court, can be viewed here.
Executives for the on-demand laundry service weren't immediately available to comment. Washio is based in Los Angeles
Postmates is being sued in the U.S. District Court of California and Liss-Riordan is seeking arbitration for customer service representatives in Salem, Oregon, and New Market, Virginia.
The Postmates complaint can be viewed here. The arbitration request is here.
Postmates wasn't immediately available to comment.
Regulations regarding Uber are in the spotlight again. Also there are the protests in France about Uber also.
The popular ride-hailing service Uber announced Monday that it will withdraw completely from Broward County at month's end.
The disruptive California startup that has raised government hackles across the globe previously retreated from picking up passengers at Fort Lauderdale-Hollywood International Airport and Port Everglades in Broward, hoping the gesture would persuade county commissioners to back off.
That didn't work.
Uber, whose smartphone app allows passengers to tap for a ride and pay via phone, still will operate in Palm Beach and Miami-Dade counties, where new regulations are in the works. And passengers can be dropped off in Broward County, the company advised customers in an email.
Would you miss Uber?
Would you miss Uber?
But Broward's new law is too "onerous,'' the company said Monday.
The rules Uber says are oppressive require each driver to obtain a county chauffeur registration, a car permit and county-run background check, plus carry state-required commercial insurance. The company has met with similar requirements all over the country.
In a written statement to the media, Uber said, "Broward County officials implemented one of the most onerous regulatory frameworks for ridesharing in the nation. We have no choice but to suspend operations on July 31. We hope the Board of County Commissioners will revisit the issue when they return from break and work with us to bring Uber back to Broward."
The company has been valued at up to $50 billion.
lRelated Uber petitions
BROWARD NEWS
Uber petitions
SEE ALL RELATED
8
Broward Mayor Tim Ryan said he thought the county and Uber were working toward compromise, and he found the news "surprising and disappointing.''
"To me it's clear that Uber provides a very good service that people want,'' said Ryan, who is asked about Uber everywhere he goes. "The regulations Broward County imposed are very reasonable. The county only asked that Uber have safe drivers, safe vehicles and insurance.''
Uber's scheduled retreat from Broward caps nearly a year of fighting between its off-the-grid drivers and their highly regulated counterparts in traditional taxis.
Dan Lindblade, president of the Greater Fort Lauderdale Chamber of Commerce, said the county went too far in requiring individual licensure for drivers of Uber or other "transportation network companies.''
Uber: 'We cannot operate' under new Broward law
Uber: 'We cannot operate' under new Broward law
"[This is] bad for the citizens, bad for our tourism industry, bad for our economy,'' he said. "It's just over-regulation. They could have done something else than just hammer it all the way to the wall. They went too far.''
Uber's popularity hinged, in part, on disdain for traditional cabs.
At public hearings and in emails that poured into county commissioners' in-boxes over the past year, customers said they favored Uber's lower fares, cleaner cars and friendlier drivers.
Retiree Steve Machoian, an occasional visitor to Fort Lauderdale who said he is planning a move to South Florida from Maryland, said he would never get in a traditional cab here.
"Not only are they rude, [the] A/C rarely works, they take you for long rides, most claim not to speak English, the cars are filthy, and most cases old and broken down,'' he said when he learned of Uber's decision. "If I can't get an Uber ride, I'm going to take my second choice and move to Delray Beach.''
cComments
@JohnnyC Uber provides over a million rides a day, and has only been implicated in two deaths? That's an order of magnitude safer than driving your own car. Sounds pretty good to me. As to the rest of these incidents, you never want to see things like this happen, but for the huge number...
FLORIDA MAN
AT 8:43 AM JULY 08, 2015
ADD A COMMENTSEE ALL COMMENTS
223
But Uber declined to follow county laws, first saying the laws needed to be modernized to specifically address app-based services, and then saying the resulting new regulations were too burdensome.
Before heading for summer break, county commissioners last month authorized their attorney to use all legal means necessary to enforce the driver-for-hire laws Uber has flouted.
County commissioners also made potential fines steeper, up to $1,000 for a driver caught breaking the law a fourth time.
The county's new "transportation network company'' law, passed in April, legalized Uber's business model. Unlike cabs, which are limited in number by the county, Uber may have infinite numbers of vehicles. Unlike cabs, whose fares are set by the county, Uber can charge as little or as much as the company desires.
Uber ride service driver, passenger OK after rollover crash near airport
Uber ride service driver, passenger OK after rollover crash near airport
But like cab drivers, Uber drivers must obtain a chauffeur registration from Broward County, which requires undergoing a fingerprint-based, FBI criminal background check.
The county's threshold for tolerating a criminal past is stricter than Uber's, as well, including charges in which adjudication was withheld.
The county also required each vehicle to be inspected by a county-approved mechanic, and to be permitted individually under a county license Uber would obtain.
Uber officials here said the company does its own car inspections and driver background checks and objected to subjecting their drivers to the county's bureaucracy.
The county also said Uber's insurance coverage for its drivers was deficient under state legal standards and left gaps that exposed customers.
Bucking government regulations has been the six-year-old company's strategy worldwide. But as time has worn on, the legal process caught up to it in some locales, as was happening in Broward.
On June 29, France arrested two Uber executives, accusing them of running an illegal taxi business. In Holland, the company is under investigation on similar allegations.
Uber has been banned in Nevada, Thailand, parts of India and Japan, as well as in Eugene, Ore.; Braintree, Mass.; and in Key West.
Uber's competitor, Lyft, also operates in Broward, and also has not sought the required transportation network company license, according to Leonard Vialpando, director of Broward's Environmental Licensing and Building Permitting Division.
A Lyft spokeswoman said by email: "We are still reviewing our options, but continue to urge the Commission to revisit the regulations and work toward a solution that preserves Lyft's safe, affordable rides and flexible economic opportunity for residents."
I have to say I am leaning toward the libertarian side regarding these cases, even though I support reasonable regulation of businesses in general.
The sharing economy is creating a new way of doing business and performing labor, that government should stay out of. Drivers and Uber, groups of consenting adults should be free to classify their relationship however they like. For someone to come after the fact and claim that a relationship is classified as one thing, when all parties agreed prior that the relationship is classified as another seems like a blatant attempt by the plaintiffs to simply get money.
And regarding taxi licenses and registration, I would say that the sharing economy has innovated beyond the need for these things, so the government trying to step in and start telling people who have innovated beyond them what to do doesn't sit well with me.
The one area that I can side with the government on is the insurance requirements for drivers. The passenger shouldn't be on the hook because a driver has inadequate insurance.