Uber Technologies Inc. would be saving more than $500 million in a year by misclassifying its drivers from California to be independent contractors, as per the law suit which claims the ride emerging company is flouting a ruling by the state’s highest court.
Uber is avoiding paying an average of $9.07 per hour in the expenses and the benefits as it is incurring if the drivers were treated in a proper way as the employees, as per the complaint lodged in the federal court in San Francisco.
By way of explanation, if the receive minimum wages, overtime, rest breaks, meal, workers, compensation and the unemployment and the health insurance along with the Social security and the other medicare benefits.
The case was brought up by the car delivery service which claims the Uber uses its illegal labour savings to price the rides below their actual cost thereby allowing it to take the business and the market share from the competitors those compensate the drivers as the employees.
The complaint alleges an April ruling by the California Supreme Court which has set a tougher threshold for the companies for classifying the workers as the independent contractors. The communicator for Uber did not forthwith feedback to the request email for the comments on the lawsuit besides the regular business hours.
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