Update to Fairness and Fares: The Challenge to the Independent Contractor in Oregon

In a blog post earlier this week we highlighted a recent Oregon Supreme Court decision which held that taxi cab drivers are employees, not independent contractors, of the cab companies they work with. We suggested that this holding implicitly threatened the business models on which companies such as Uber, Lyft and similar enterprises in the emerging “sharing economy” have grown. A recent article in the ABA Journal concerning the recently announced settlement of a California class action brought on behalf of Lyft drivers according to which Lyft has agreed to pay $12.25 million to approximately 100,000 of its drivers and to reconfigure the terms of its future relationship with them confirms the dimensions of that threat.

© 1/28/2016 Lawrence B. Hunt of Hunt & Associates, P.C.  All rights reserved.

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