Louisiana readers have likely either called for a ride from a company like Uber or knows someone who did. Rideshare companies are quite popular, but Uber, one of the biggest, is currently facing commercial litigation due to the way it classifies its employees. This issue is hotly debated, and thanks to a recently filed civil suit, the company will have a chance to defend its practices in court.
Employee classification is important. It affects whether workers get overtime and whether they are eligible for a minimum wage. In another state, a recently passed bill would require the company to reclassify drivers, therefore making them eligible for certain benefits. The company maintains that it should not have to reclassifiy drivers, which the company currently categorizes as contractors rather than employees.
If the company is made to redo its current classification system, it could spell major financial losses for the rideshare giant. Estimates suggest that the amount could range in the hundreds of millions of dollars. Reclassifying employees would make them eligible for workers’ compensation and other benefits, including certain types of reimbursements. The back pay and compensation could be steep, and the company is expected to vigorously fight this in court.
It is not immediately clear how this commercial litigation could potentially impact the way Uber works in Louisiana. However, businesses in the state that contract workers would be wise to pay attention to this case. It could be beneficial to speak with a legal advocate to in order to review how a company operates and make sure it is adhering to all pertinent employment laws.