What to Know
- New York State deemed two former Uber drivers employees, not contractors, making them eligible for unemployment benefits
- The New York Taxi Workers Alliance Executive Director called it a historic victory
- Uber is appealing the decision
Advocates say two former Uber drivers are eligible for unemployment benefits after the New York state labor department determined they were employees, not independent contractors as the company says.
The New York Taxi Workers Alliance Executive Director Bhairavi Desai called it a historic victory Thursday.
The alliance sued on the drivers' behalf after they complained that their unemployment claims were not being reviewed.
It called on the labor department to audit Uber so all drivers could be deemed employees.
Uber is appealing. It adds that as employees, drivers would lose the personal flexibility they now enjoy. A Uber spokesperson said nearly 90 percent of drivers say the main reason they use Uber is because they love being their own boss.
"Drivers use Uber on their own terms; they control where and when they drive," the spokesperson told NBC 4 New York. "As employees, drivers would lose the personal flexibility they value most — they would have set shifts, a fixed hourly wage, and be unable to use other ridesharing apps."
Local
The labor department says it's continuing to examine the issue on a case-by-case basis. It has decided that some drivers were employees and others were independent contractors.
