Fighting Uber on the legal front
Governments at all levels, taxi drivers’ organizations, and even Uber’s own drivers have challenged the ride-sharing company under a variety of laws, regulations and bylaws.
Here’s a look at some of the cases:
A provincial bill looking at ways to regulate illegal taxi cabs received second reading at Queen’s Park in April. Bill 53, the Protecting Passenger Safety Act, would increase the penalties for unlicensed commercial drivers to between $500 and $30,000 dollars. Those charged under the act could also have their licence suspended, their vehicle seized and receive demerit points. The bill was referred to the standing committee on social policy after it was carried on second reading. The Ontario Highway Traffic Act requires a licence or permit to pick up paying customers.
Toronto taxi owner Dominik Konjevic launched a $410-million class action suit against Uber this summer on behalf of the taxi industry, claiming that Uber and its drivers “knew or ought to have known that the natural result of their conspiracy would be injury to the ongoing legitimate business interests of the class members.”
Toronto lost its court bid to ban Uber in July. Toronto had argued that Uber was carrying on the business of a taxicab broker or limousine service company because it was accepting and processing requests for taxicab or limousine services without a licence. Ontario Superior Court Justice Sean Dunphy rejected a request for an injunction and ruled that Uber doesn’t need a licence to operate under current bylaws. Dunphy found that there was “no evidence” that Uber was acting as a taxi broker because the smartphone app is automated, so drivers don’t “accept” communications from riders.
The California Labor Commission ruled in June that an Uber driver is an employee, not a contractor because Uber is “involved in every aspect of the operation.”
The ruling was based on the claim of an individual driver. In a statement, Uber responded that the labour commission’s finding was “non-binding and applies to a single driver.” Uber has appealed the ruling in California Superior Court.
A U.S.- wide class action lawsuit against Uber and Lyft, another riding-sharing company, was certified in California in September.
The drivers claim they have been misclassified as independent contractors and are entitled to be reimbursed for gas, maintenance and other expenses.
Uber’s business model depends on the assumption that its workers are contractors, not employees — companies do not have to pay payroll taxes, benefits or vacation time for contractors.
One argument is likely to emerge: wage laws protect workers but also prevent businesses from gaining an unfair competitive advantage by undercutting the competition.
Uber operated briefly in Vancouver in 2012, but left after provincial authorities demanded the company seek limousine licences for all its drivers.
Customers using limousine services in B.C. must spend at least $75 for each trip.