Oregon regulators say Uber drivers are employees

Published 4:06 pm Wednesday, October 14, 2015

PORTLAND, Ore. — Uber drivers are employees, not independent contractors, the Oregon Bureau of Labor and Industries said Wednesday in an opinion that takes direct aim at the business model for the popular ride-hailing company.

The bureau’s advisory opinion has no legal force. Regulators could only sanction Uber if a driver filed a formal complaint and regulators reviewed evidence and legal arguments specific to that person’s situation.

Uber rejected to the finding, saying it’s based on lax research and inaccurate information.

Labor Commissioner Brad Avakian, who issued the advisory, said he’s hopeful Uber would see the advisory as “helpful to them, not a threat.”

“I believe it was important to let Uber, its workers and other transportation companies know how I see Oregon’s law being applied to their relationship,” Avakian said. “And it’s clear to me that Uber drivers are employees.”

Avakian is running for secretary of state and faces a tough Democratic primary.

Uber has long maintained that it doesn’t employ its drivers, but rather serves as a technology platform that connects them with people seeking rides. It has become one of the most visible companies driving the so-called “sharing economy.” Its critics say Uber and other companies that rely on independent contractors are eroding the workplace protections that Americans have long enjoyed.

Companies face higher costs for employees than they do for independent contractors, such as payroll taxes, unemployment insurance and workers’ compensation. Court rulings interpreting labor laws say that workers classified as independent contractors must have a degree of autonomy over when and how they work.

Avakian’s opinion says the Bureau of Labor and Industries used administrative and court records from California cases for the facts that guided the conclusion. In June, the California Labor Commission ruled that an Uber driver was an employee and ordered the company to pay back wages and expenses.

In a statement, Uber said the Bureau of Labor and Industries does not appear to have talked to any drivers and had just a five-minute phone call with an Uber official before issuing the opinion.

“Unsurprisingly, it’s full of assertions that are plain wrong,” Uber said. “It’s disappointing that a public body would have so little regard for the facts,”

Many of its drivers work fewer than 10 hours per week and value their flexibility and independence, the company said. Uber also points out labor rulings in other states that back up its position that drivers are independent contractors.