We look at the distinction between employees and independent
contractors in light of the recent cases against "on
demand" technology companies.
"Drive" in Litigation
There has been a significant increase in litigation in the US
against "on demand" technology companies such as Uber
regarding the classification of employees versus independent
contractors. These companies have been faced with litigation from
drivers who claim to be employees rather than independent
contractors. Where a "worker" is classified as an
employee, this can have serious repercussions for a company in
terms of potential employment claims, not to mention tax penalties
on fees paid on a contractor rather than employment basis and so
have not properly been subject to payroll tax deductions.
