A federal US labour agency ruled in an ongoing case that Uber drivers are independent contractors and not employees. According to the agency, Uber drivers set their working hours, own their cars, and are free to work for Uber's competitors, and hence cannot be considered employees under federal law. The recommendation memo (read a copy below) came from the general counsel of the US National Labour Relations Board, in a case which is pending before the NLRB regional director. The NLRB general counsel's memos are generally upheld in rulings. Many companies including Uber and Lyft have faced dozen of lawsuits accusing them of misclassifying drivers as contractors or "partners" under American federal and state laws, instead of as employees. Employees are significantly more costly because they are entitled to the minimum wage, overtime pay and reimbursements for work-related expenses under those laws. Also, under the National Labour Relations Act, independent contractors cannot join unions and do not have legal protection when they complain about working conditions. The memo is a step in cementing that Uber drivers do not have labour rights. The rationale for drivers being independent contractors, not employees Two factors were weighed the most to decide whether drivers are employees or independent contractors, The extent of Uber's control over how drivers conduct business the relation between the company's compensation and how fares are collected 1. Lower company control, more freedom for drivers' earnings: The labour board considered entrepreneurial opportunity or "economic gain" coming from a result of lower company…
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