Uber, Lyft Saved $413M Using 'Contractors,' Labor Group Says

By Kevin Stawicki (May 7, 2020, 4:54 PM EDT) -- Uber and Lyft would have contributed more than $400 million to California's unemployment insurance fund since 2014 had they classified hundreds of thousands of drivers as employees instead of independent contractors, according to a report released Thursday by a labor group affiliated with the University of California, Berkeley.

The UC Berkeley Labor Center found that the technology platforms avoided paying $413 million into the state's unemployment funds from 2014 to 2019 by classifying drivers as independent contractors and failing to pay the tax rate of 3.4% of compensation they would have been required to pay per employee.

"By not paying into...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!