LEGAL Uber Fined $7M for Keeping Info From California Regulators

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http://abcnews.go.com/Technology/wireStory/uber-fined-7m-keeping-info-california-regulators-32479254

Uber Fined $7M for Keeping Info From California Regulators
SAN FRANCISCO — Jul 15, 2015, 8:45 PM ET
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Associated Press

Uber picked up a hefty tab Wednesday when a judge fined the taxi-alternative's California subsidiary $7.3 million for refusing to give state regulators information about its business practices, including when its drivers turn down ride requests and how accessible vehicles are to disabled riders.

The fine was part of a ruling by an administrative law judge at the California Public Utilities Commission, the regulatory agency that allowed Uber and its competitors such as Lyft to operate in the state as long as the companies reported aspects of their activities.

The judge agreed with utility commission staff who said Uber's California subsidiary, Rasier-CA, has not filed all required reports, specifically about how often it provided disabled-accessible vehicles, places where drivers tend to turn down ride requests, and the causes of accidents.

Uber's app allows passengers to request a ride directly from drivers in the area — and allows drivers to decline the request. The utilities commission wants to see whether drivers are accepting fares evenly.

Attorneys for Rasier-CA had argued that the company provided sufficient information to the commission. The judge acknowledged that the company provided some of the contested information but said it was not enough.

In a written statement, Uber spokeswoman Eva Behrend called the ruling and fine "deeply disappointing" and said the company would appeal.

"Uber has already provided substantial amounts of data to the California Public Utilities Commission, information we have provided elsewhere with no complaints," Behrend wrote, adding that submitting more detailed information could affect the privacy of passengers and drivers.

In a written statement, the utilities commission said Uber was the only company of its kind not to comply with the reporting requirements.

Uber has previously tussled with public officials. In Portland, Oregon, for example it had an extended disagreement with the city that led it to suspend operations. In France, Uber suspended its low-cost service following an escalating legal dispute and sometimes-violent tensions with traditional French taxi drivers. French authorities had ordered the service — called UberPop — shut down, but Uber refused, pending a legal decision at a top French court.

 

[Housecarl]

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http://sfist.com/2015/07/15/reclassifying_drivers_as_employees.php

Reclassifying Drivers As Employees Could Cost Uber $209 Million In California Alone

by Caleb Pershan in News on Jul 15, 2015 1:35 pm

A rough model built by Re/code with the help of ZenPayroll estimates that Uber could end up paying an added $208.7 million a year if it has to reclassify its California drivers.

It breaks down to about $89.1 million for payroll taxes for 45,000 drivers working 20 hours a week in the state, and roughly $119.6 million per year in workers’ compensation insurance. Altogether, it’s $4,637 per employee in California.

Uber's business model, not to mention the company's 50 billion valuation, is firmly rooted in the assumption that drivers for the company are not its employees, but instead contractors that Uber — a technology company — connects to customers with its app. Maybe that's so — and Uber claims that's what drivers like about it and have come to expect. But after a California Labor Commission ruling last month, Uber drivers are ever closer to being called employees. Even more recently, in a case involving liability and a driver for Yellow Cab an SF jury found Yellow Cab drivers, previously classified as contractors, were in fact employees.

Uber is likely to fight reclassification state by state unless a group steps up with a class action suit. Therefore these kinds of costs could be incurred one at a time and slowly. Here in California, which might be home to Uber's largest driver base, not only would classifying Uber drivers as employees end up costing the company and questioning its entire business model. Uber would also have to pay penalties for having mis-classied them as contractors for so long.

If Uber does have to reclassify, it wouldn’t just be hit by additional taxes — it could suffer major penalties for all the drivers it had mis-classified up until now. FedEx, perhaps the closest parallel, had to pay a $228 million settlement when it lost a class action suit about the way it classified its California drivers.

Related: Now Uber Wants To Track Your Location Even When App Is Not Running

 

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http://techcrunch.com/2015/07/15/ub...ith-the-law-or-face-suspension-in-california/

Uber Has 30 Days To Comply With The Law Or Face Suspension In California

Posted 1 hour ago by Sarah Buhr (@sarahbuhr)

Uber faces suspension of its license to operate in the state of California within 30 days and up to $7.3 million in fines for refusing to comply with state laws, according to a judge.

The law requires Uber to hand over operational data regarding requests for accessibility to the California Public Utilities Commission under a 2013 law that legalized ride hailing services in the state, but Uber’s subsidiary Rasier-CA, which handles that data for Uber in California, has so far refused to do so.

The CPUC gave ride hailing services Lyft, Sidecar and Uber one year to comply. According to the Commission, Uber is the only one that refused to hand over the proper information regarding accessibility.

However, Uber said it did provide the proper information under the law, but the CPUC then asked for more information that would compromise the privacy of its users.

“This ruling–and the associated fine–are deeply disappointing,” said Uber spokesperson Eva Behrend. “We will appeal the decision as Uber has already provided substantial amounts of data to the California Public Utilities Commission, information we have provided elsewhere with no complaints. Going further risks compromising the privacy of individual riders as well as driver-partners. These CPUC requests are also beyond the authority of the Commission and will not improve public safety.”

Uber continues to face numerous legal issues throughout the world – including a suit in both California and Texas that claims drivers have discriminated against the disabled and refused to give rides to blind people with service dogs.

Uber denied responsibility in these cases and said those who do refuse to serve the disabled are fired or suspended. The ride hailing service now plans to take action on the CPUC order asking for accessibility information.

 

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http://www.foxnews.com/tech/2015/09...uit-gets-class-action-go-ahead/?intcmp=hphz06

Trouble for Uber after 'driver status' lawsuit gets class-action go-ahead

Digital Trends
By Trevor Mogg
·Published September 02, 2015

A federal judge in California has granted class-action status to a lawsuit aimed at getting Uber to recognize its drivers as full-fledged employees and not simply as independent contractors, as the company currently sees them.

The ruling will come as a blow to the ride-hailing company, which will now have to defend its entire business model in a fight that, if it loses, is likely to have a serious impact on its operation, as well as on the wider sharing economy.

Related: Uber faces $300 million lawsuit in Canada as disgruntled Toronto taxi drivers take a stand

As things stand, Uber and similar companies treat their employees rather like freelancers, a convenient approach as it keeps running costs down. In other words, Uber doesn't have to concern itself with things like Social Security, unemployment insurance, and workers' compensation for its drivers.

And that's not all. The set-up also means its drivers -- or "partners" as Uber likes to call them -- have to cover car-related costs, which include everything from gas to insurance to vehicle repairs.

Tuesday's ruling was handed down in a San Francisco court by U.S. District Judge Edward Chen. Although the original claim was brought by three Uber drivers demanding reimbursement for unpaid tips and other expenses, the class-action status means the lawsuit could cover some 160,000 California drivers, Reuters reported.


Related: Arro is the latest cab-hailing app to try and topple Uber

In a similar case earlier this year, California's Labor Commission ruled in favor of Uber driver Barbara Ann Berwick who demanded to be recognized as an employee of the company rather than as an independent contractor. The San Francisco-based company is appealing the decision.

Uber's classification of its drivers as independent contractors has been a key factor in its rapid global growth, with the current system enabling it to save huge amounts of money for subsequent investment.

The class-action case will at some point go before a jury, with the final judgment likely having a major impact on similar suits in other states. If the drivers win, the ramifications for Uber and other businesses that operate along the same lines could be huge.