Regulations

NLA Lauds Ruling That Uber Driver Is An Employee

Posted on June 19, 2015 by Tom Halligan - Also by this author - About the author

NLA President and California operator Gary Buffo on June 18 said a recent California Labor Commission ruling on an Uber driver being an employee could set a far-reaching precedent in classifying TNC drivers as employees, not independent contractors.
NLA President and California operator Gary Buffo on June 18 said a recent California Labor Commission ruling on an Uber driver being an employee could set a far-reaching precedent in classifying TNC drivers as employees, not independent contractors.

In what may be the Achilles’ heel of upstart transportation network companies, the California Labor Commission ruled June 18 that an Uber driver must be classified as an employee rather than an independent contractor.

The ruling made headlines considering Uber, a $50 billion “ride-sharing” service, has rejected being subject to any regulations that deem its drivers are employees — coupled with the company standing firm that it is only a free-lancer-based “technology app company” rather than a business that commands tens of thousands of drivers worldwide.

Related article: Labor Ruling Good For TLPA, NLA, Unions

To be clear, the commission’s ruling only applies to a single Uber driver who challenged the independent status in California. But its ripple effects could be crippling to TNCs if other states follow suit with reclassifying TNC drivers.

“The NLA is very pleased with the fair and balanced ruling, and we are committed to upholding universal standards and best practices for all companies that employ drivers for private transportation,” said NLA President Gary Buffo in a press release commenting on the ruling. “It is crucial for state and local governments to develop proactive legislation as our industry continues to evolve and the market expands,” he added.

Buffo also told LCT that given California is a “worker friendly state,” the ruling could have a ripple effect nationwide and at the federal government level in reclassifying TNC drivers to employees.

“Uber will get to appeal the ruling I believe twice, but if it stands, it can be a precedent nationwide. This is very positive for our industry,” Buffo said. He added that it is “crucial for state and local governments to develop proactive legislation as our industry continues to evolve and the market expands.”

 

 

 

 

View comments or post a comment on this story. (2 Comments)

More News

Classifying Uber's Business Model: A Complicated Affair

Governments have every right to regulate a digital platform that arranges rides and provides work for its citizens.

Industry Leaders Adjust Political Agenda For Trump Era

The NLA is sizing up a post-Nov. 8 legislative and regulatory scene that could yield breakthroughs as well as new unknowns.

Mass. TNC Drivers Face Background Checks Sooner

The state will conduct Criminal Offender Record Information and Sex Offender Registry Information background checks and consult motor vehicles records.

What Will Trump's Transportation Pick Mean For TNCs?

Department of Transportation Secretary nominee Elaine Chao has shown friendliness to the gig economy.

Airports Add Surcharges for Limos, Taxis, And TNCs

Officials at most airports were reluctant to explain why they charged the fees except that doing so helps keep airport costs down.

See More News

Facebook Comments ()

Comments (2)

Post a Comment

Submit

Blogs

See More

See More

See More

See More

LCT Store

LCT Magazine - December 2016 $12.95 GLOBAL/INTERNATIONAL ISSUE COVER STORY: * The Coolest Operators on the Planet * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close