Dive Brief:
- The Oregon Bureau of Labor and Industries (BOLI) issued an advisory opinion last week, stating that Uber drivers are employees, not independent contractors.
- The Oregon decision is the latest in this area, following similar conclusions by the California Labor commissioner and the U.S. Department of Labor.
- Legal watchers believe that the Oregon BOLI decision ultimately could lead to court decisions or administrative rulings that force Uber, Lyft and traditional taxi companies to start paying minimum wage or other employee benefits nationally, not just in California or Oregon.
Dive Insight:
In a statement, Oregon Labor Commissioner Brad Avakian said that Oregon’s worker protections are "in place for a reason, When corporations misclassify an employee, the worker is denied basic protections such as the right to be paid on time and in full. It also creates an unfair playing field for other employers who pay employment taxes, minimum wage and workers’ compensation insurance.”
In fact, BOLI, in its opinion, cited the recent decisions by the U.S. Department of Labor and California court cases. “Uber suffers or permits drivers to work for the company’s benefit,” the BOLI opinion said. “Further, drivers are economically dependent on Uber pursuant to the 'economic realities' test. Under Oregon law…Uber drivers are employees.”
The sharing economy worker classification debate continues unabated, a trend that HR leaders are no doubt following closely.
