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13 Apr 2018 9:10pm

U.SA.court : Uber drivers are independent contractors

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Philadelphia ,U.S.A : In something that may gladden the hearts management of  ride hailing company Uber, a judge in Philadelphia has ruled that limousine drivers used by the company  are independent contractors and not the company’s employees under federal law.

U.S. District Judge Michael Baylson ruled that the company does not exercise control over the drivers for them to be considered employees under the federal Fair Labor Standards Act. The drivers are free to work as they wish.

This ruling is going to be major relief for the company as many drivers have filed legal cases against the company asking for benefits which permanent employees get.

The case was filed in February 2016.The plaintiffs said Uber failed to pay them minimum wage and overtime in violation of the Fair Labor Standards Act, which only applies to employees. Several drivers who had issues with the company have gone in for arbitration but plaintiffs were among few who decided to file a suit.

Jeremy Abay, a lawyer for the plaintiffs, said he would appeal the ruling to the Philadelphia-based 3rd U.S. Circuit Court of Appeals.

The case will have ramification for other IT companies operating in the same realm.

 


Tagged: Uber Fair Labor Standards Act IT Companies
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