Popular ride-hailing service Uber may have its business model turned upside as the California Labor Commission ruled that in accordance with the Fair Labor Standards Act (FLSA), at least one Uber driver, Barbara Ann Berwick, must be classified as an employee, not an independent contractor. In order to avoid paying benefits and overtime-related expenses by treating its drivers as actual Uber employees, Uber’s business model has opted to classify the drivers as “independent contractors,” despite the company’s crucial dependence on the drivers. In defense of this business model, Uber has long stated that it only operates as a software company ... Read More
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