Uber, Lyft Decisions Highlight Difficulty Of Classifying Workers In The Modern Economy

"The test the California courts have developed over the 20th Century for classifying workers isn't very helpful in addressing . . . 21st Century problem[s]."  So concluded the court in Cotter v. Lyft, Inc., one of two opinions handed down by the U.S. District Court for the Northern District of California on March 11, 2015, that highlight a growing problem in employee misclassification law.

Cotter and O'Connor v. Uber Technologies, Inc. are putative class actions by current and former drivers for the popular taxi alternatives Lyft and Uber who allege that the companies improperly classified them as independent contractors rather than employees.  On March 11, the courts in both cases denied motions for summary judgment, ruling that whether the drivers are employees is a question of fact to be resolved at trial.