Ever since Driving for Uber was introduced, the debate about what kind of job ‘Uber’ was, has been debated. In the beginning, Uber claimed those working as drivers were simple employees, but regulations passed recently say otherwise.
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Ruling by the National Labor Relations Board
The National Labor Relations Board determines what jobs fit under rulings. In this case, if driving for Uber is being an ’employee’ or a contractor. Just a few years ago the National Labor Relations Board rules Uber Drivers as employees, but as the criteria changed in order to use a 1099 form when working, the definition of being an uber driver shifted as well.
Criteria In Order to be a Contractor
Contractors typically work for themselves, which describes driving for Uber. They also use their own materials and can work for multiple competitors without the company they are working for getting involved.
Listed Below are reasons why Uber Drivers are not contractors as stated by Suzanne Lucas, writer for Inc.
- Use their own equipment
- Set their own schedules
- Are free to work for competitors
- Are responsible for their own profit/loss
What does this mean in the long-run?
In the long-run Uber, Drivers may have to file taxes differently than before. Although this change in label or work, there won’t be too many changes. The debate on whether you are a contractor versus a Uber employee has been going on for years. It is no surprise that the criteria have changed.
However, just as the title changed to the contractor, it may bounce back later on depending on the wording that is updated.
Currently, since Uber Drivers are now considered ‘Independent Contractors’ through the eyes of the United States, Uber will not be paying for overtime and benefits. Uber drivers around the country have mixed feelings about this declaration.
