The business model employed by ride-hailing company Uber Technologies, Inc., has certainly been disruptive in the transportation business. Now, a decision involving Uber may have implications for telecommunications carriers as well. In a closely watched decision, a California federal judge agreed to certify a class of California drivers who claim to have been misclassified as independent contractors instead of employees. The Uber decision has potential ramifications for any company that relies on engaging independent contractors as part of its business model – including start-ups and many communications companies. Many communications companies make similar uses of independent contractors to perform key functions, and therefore should heed the lessons of the decision. At a minimum, the Uber decision demonstrates why companies must remain cognizant of how they classify workers in order to avoid similar costly and time-consuming class action cases.
Kelley Drye’s Litigation group has prepared an advisory on the Uber decision. We encourage you to read the summary and contact us if you have any questions about how the decision might impact your business model. Click here to read the full Kelley Drye Client Advisory, Class Action Suits By Independent Contractors — the Uber Class Certification Decision.