Lawsuit claims Uber drivers and staff are owed standard compensation
Proposed class-action challenges company’s view that its workers are independent contractors
Uber drivers are employees, not independent contractors, and are owed standard employee compensation including a minimum wage and vacation pay, says a proposed class-action lawsuit launched on behalf of an Uber delivery driver in Toronto.
Filed with the Ontario Superior Court by Toronto employment law firm Samfiru Tumarkin LLP on Jan. 19, the action against Uber Technologies Inc. also demands $200 million in punitive damages.
It names occasional Uber driver David Heller as representative plaintiff for the class to be drawn from the approximately 20,000 Uber drivers in the province.
The suit seeks class-action certification and a court ruling that members of the class are employees of Uber and are entitled to the same benefits and protections enjoyed by other Ontario employees.
The lawsuit’s claims haven’t been tested in court. Uber spokesperson Susie Heath did not immediately respond to a request for comment.
Uber has said that flexibility offered by the contractor classification is part of the company’s appeal.
The proposed class-action lawsuit argues that drivers who have worked for Uber in Ontario since 2012 have been misclassified and should be recognized as employees under the Employment Standards Act.
The lawsuit seeks a declaration that Uber violated the act through misclassification and by not advising drivers of their entitlement to wages at least equal to Ontario’s minimum, overtime after 44 hours and vacation pay at 4 per cent of pay.
The claim argues that the duties performed by class members create an employment relationship with Uber since a hallmark of a typical contractor is being able to freely negotiate the terms of engagement.
The claim says the service, for example, trains workers, sets pay rates, methods and work volume.
Lior Samfiru, head of the labour and employment law practice group at Samfiru Tumarkin, said U.S. class actions over Uber workers’ employment classification are unresolved except for one where a settlement was reached, but the court has ordered the parties to renegotiate because it said the settlement was too low.
Samfiru said there have been successful cases of Uber drivers applying to tribunals to be reclassified as employees, including a recent case in California.
He said he expects a decision to be made on certification of the Ontario suit in the second half of the year.