The ruling could have far-reaching implications for the “share economy”. The Commissioner’s Office stated that Uber is more than a passive platform that connects drivers with riders, specifically, Uber is “involved in every aspect of the operation,” vetting drivers, setting standards and establishing non-negotiable rates. Additionally, Uber retains the right to remove drivers from using its service if customers give those drivers a low rating.
READ MORE Uber and Lyft LEGAL NEWS
While companies such as Uber and Lyft are relatively new, they are already facing California labor lawsuits alleging drivers for the businesses are misclassified as independent contractors when they should be considered employees, and therefore eligible for overtime, minimum wage and expenses.