WASHINGTON (Sputnik) – The US transport company Uber is appealing a California Labor Commission’s ruling that Uber drivers should be considered as employees, according to court documents filed on Wednesday.
The appeal relates to a lawsuit filed by Uber driver Barbara Berwick in September 2014, alleging the company had not paid her two months of contractor wages as well as damages and waiting time penalties for violations of the California Labor Code.
Berwick is set to receive nearly $5,000 from the decision, but the implications could be wide-ranging and costly for the startup transportation service. If Uber’s drivers are considered employees and not indepedent contractors, the company will be required to pay Social Security, health care, unemployment insurance, and other benefits for its employees.
The California Labor Commission made its decision based on a similar case in 1991 between a taxi company and a driver.
Uber is a transportation company that allows riders to use their smartphones to request transportation from drivers who use their own transportation.
