A PYMNTS Company

US: Uber’s classification of drivers may violate CA antitrust law judge says

By  |  June 23, 2019

According to a report from Reuters, a federal judge in San Francisco has ruled that Uber Technologies’s treatment of drivers as independent contractors rather than employees could significantly harm competition and may violate California antitrust law.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Bloomberg Law reported that Judge Edward Chen of the US District Court for the Northern District of California, who is currently hearing a case brought against Uber by Los Angeles-based Diva Limousine, also ruled that Uber’s business model, as it pertains to drivers, could harm its competitors. In court, Diva’s lawyers argued that alleged misclassification of drivers could save the company as much as US$500 million annually in California alone.

    In 2018, the California Supreme Court made a ruling making it more difficult for companies to classify workers as independent contractors. It also named misclassification of employment as a type of unfair competition.

    However, Chen’s ruling is not a final decision in this case. The judge dismissed one of Diva’s complaints against Uber due to jurisdictional issues and other legal arguments.

    Full Content: Bloomberg, Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.