Black cars are for-hire vehicles that provide ground transportation by prearrangement with customers. Black-car drivers rent or

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“Black cars” are for-hire vehicles that provide ground transportation by prearrangement with customers. Black-car drivers rent or purchase their franchises directly from franchisors. The franchise agreements require franchisees to pay additional fees and to obtain a New York City Taxi & Limousine Commission (“TLC”) license, insurance, and a vehicle that they are responsible for maintaining. Franchise agreements state that “Franchisee is not an employee or agent of Franchisor, but merely a subscriber to the services by Franchisor. Franchisee shall at all times be free from the control or direction of Franchisor in the operation of Franchisee’s business, and Franchisor shall not control, supervise, or direct the services to be performed by Franchisee.” The franchise agreements also require that drivers comply with “Rulebooks”—manuals setting our certain standards of conduct. The Rulebooks forbid, for instance, harassing customers or other drivers and submitting fraudulent vouchers. The Rulebooks include a dress code, which requires drivers to dress neatly in specified business attire, as well as guidelines for keeping vehicles clean. Drivers are not required to wear a uniform, however, or to mark their cars with franchisor insignias. Compliance with the Rulebooks is enforced by Franchisor Security Committees, composed entirely of drivers who serve elected terms. If a Security Committee determines that a driver has broken a rule, it can impose a monetary penalty on the driver, temporarily suspend the driver, or even terminate the driver’s franchise agreement. Black-car drivers signal their availability to work by consulting a smartphone app, choosing a zone, and “booking into” it. Drivers determine when and how often to drive, choose which area in which to work, and are free to accept or decline jobs. Most of the drivers drive for other black-car companies regularly. Once a driver picks up a client, he or she is free to choose the route to that client’s designation. The franchisors negotiate rates with clients, supply a proprietary dispatch technology, and operate the dispatch system. Drivers take home the majority (in some cases up to 85 percent) of each fare. Drivers classify themselves as independent contractors on their tax returns and take substantial business deductions. Are the drivers employees covered by the FLSA or independent contractors? Why?  (Saleem v. Corp. Transp. Group, 854 F.3d 131 (2nd Cir. 2016).

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