Critical Thinking Exercise 14-1 - Law Firm 2

FromSpecial Topics in Business Law

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Uber is a well-known company that provides an app to connect people who need a car ride with drivers. Uber drivers provide their own vehicles, and pay for the fuel and maintenance for those vehicles. They can work anytime they wish, for as long as they wish, though their contract can be terminated if they reject too many ride requests or do not accept any ride requests for a significant number of days. (However, Uber's driver Handbook states that it expects on-duty drivers to accept all ride requests.) Uber prohibits its drivers from answering rider queries about booking future rides outside the Uber app, or otherwise "soliciting" rides from Uber riders. (For example, Uber's driver Handbook provides that actively soliciting business from a current Uber client is categorized as a "Zero Tolerance" event that "may result in immediate suspension from the Uber network.") Uber determines the route drivers are to use (unless overridden by the passenger). Uber collects all fares and tips, which are then forwarded to the drivers after subtraction of Uber fees. While Uber performs some supervision of drivers, most supervision is provided by user comments, which can directly affect not only the ability of drivers to obtain fares, but can also determine whether drivers remain under contract with Uber. Also, Uber instructs drivers to, amongst other things: "make sure you are dressed professionally"; send the client a text message when 1-2 minutes from the pickup location ("This is VERY IMPORTANT"); "make sure the radio is off or on soft jazz or NPR"; and "make sure to open the door for your client."

Uber classifies all its drivers as independent contractors. It considers itself a "technology company," not a "transportation company," that is an intermediary between people who need a ride and individuals who are willing to provide that ride.

1. Applying each of the classification tests to the facts above, are Uber drivers properly classified as independent contractors or are they really employees?
2. Does your answer change depending on which test you use?