5 Signs You Are Being Exploited by Uber / Lyft

As their business models appear to be designed to exploit independent contractors, Uber, Lyft, and other companies have received scrutiny for their mistreatment and underpayment of drivers.

Uber and Lyft have and continue to treat their drivers as independent contractors. In turn, drivers are underpaid, not provided the appropriate benefits, and are responsible for all vehicle-related expenses. However, drivers deserve to be compensated fairly for their time and effort.

If you are currently being misclassified as an independent contractor and are being paid less than you deserve, it’s time to hold these rideshare companies accountable.

Let’s take a look at five signs that you are being exploited by Uber and Lyft.

5 Signs You Are Being Exploited by Uber & Lyft

Before taking action, it’s important to understand whether or not you may be entitled to additional compensation from Uber or Lyft.

The following factors are signs that you may have a case against Uber or Lyft for employee misclassification or underpayment.

1. You are an independent contractor

Independent contractors are not given access to the same wages or benefits that are given to traditional employee. Things like a fair minimum wage, mileage reimbursement, health insurance, and more.

If you are working under Uber or Lyft as an independent contractor, you may be entitled to compensation on the basis of employee misclassification.

2. You make less than minimum wage

The minimum wage exists for a reason. This wage is set to ensure every employee makes as much as they need to support themselves. While many would argue that the minimum wage is already too low, many Uber and Lyft drivers make even less than the federal minimum wage. For drivers who depend on Uber or Lyft as their main source of income, this is unacceptable.

If you are regularly making less than minimum wage while driving for Uber and Lyft, you may have a case for employee underpayment.

3. You are not issued a W-2 tax form

If you’re not sure whether or not you are currently classified as an independent contractor or as an employee, an easy way to tell is to check the tax forms sent to you by Uber or Lyft.

The IRS requires different forms for different types of employees. W-2s are typically given to all traditional employees, while 1099s are given to independent contractors. If you receive a 1099-K or 1099-MISC from Uber or Lyft rather than a W-2, you may have a case for employee misclassification.

4.You are not reimbursed for mileage or vehicle related expenses

Many believe drivers are already being underpaid by Uber and Lyft; however, this is made worse by the fact that drivers are responsible for vehicle-related expenses, including mileage and regular wear and tear. As a result, drivers have to give up a portion of their already low wages to maintain their vehicles so that they can continue working.

If you are not being compensated for mileage or other vehicle-related expenses while on the clock, you are being exploited by Uber and Lyft.

5. The ABC test

On January 1, 2020, California’s Assembly Bill 5 (AB 5) went into effect. This Bill establishes a set of standards to determine classification of a worker. Whether any given worker should be classified as an independent contractor or employee. This set of standards is referred to as the ABC test.

According to the ABC test, workers are considered independent contractors if they:

• are free from the control and direction of the hiring company as it related to the performance of the work.
• perform work that is outside of the company’s normal course of business.
• are customarily engaged in an independently established trade, occupation, or business.

If a court decides that these criteria haven’t been met, the worker is considered an included employee. When in turn they should be considered an independent contractor.  We believe Uber and Lyft drivers clearly fall under the employee umbrella pursuant to the ABC test.

Hold Uber & Lyft Accountable

Do any of the five signs listed above apply to you?

If so, we want to hear about it. BB Law Group is dedicated to helping Uber and Lyft drivers get the compensation and benefits they deserve. It’s time to stop letting gig companies exploit their workers in the name of profits.

Contact BB Law Group today to set up a free consultation with an experienced employment law attorney to determine whether or not you may have a case against Uber or Lyft.