A well-known Boston labor lawyer is suing Uber, claiming that the car service exploits drivers.
The suit filed Thursday in Suffolk County Superior Court in Boston by Shannon Liss-Riordan, who has won major labor lawsuits representing Starbucks baristas, house cleaners, skycaps, and exotic dancers, accuses Uber of misclassifying its drivers as independent contractors to avoid paying them the same as employees with benefits, according to the Boston Globe.
The suit also claims that Uber does not give drivers gratuities from riders and that the company “retails a portion of the gratuity for itself.” If true, this violates Masachusetts tips law. Liss-Riordan filed the case on behalf of an Uber drive, but is seeking class action status so the case could apply to other drivers.
Liss-Riordan filed a similar labor suit against Uber on behalf of six drivers in U.S. District Court in California, where the company is based. If Liss-Riordan wins either case, Uber may be forced to change a key part of its business model. Because Uber drivers are not classified as employees, the car-sharing service shifts its expense of running the buiness to the workers, Liss-Riordan claims.
Uber is one of the highest-profile example of a company that fits into the peer economy category. If these services continue to grow, states may need to amend its labor laws and include a hybrid employment classification between freelancer and employee.
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