Ride-Sharing company Uber and its Philadelphia subsidiary Gegen LLC are named defendants in a class action lawsuit alleging violations of the Fair Labor Standards Act and Pennsylvania wage laws. Plaintiffs include three Philadelphia UberBlack drivers filing on behalf of current and former Uber drivers. The drivers claim that Uber misclassified them as independent contractors instead of employees, thereby avoiding the need to pay Uber drivers hourly and overtime wages, as well as avoiding various state/city taxes.
UberBlack drivers are required to pay Uber 25% of their earnings as well as regulatory fees, vehicle payments and insurance premium payments. These payments that drivers need to make to Uber, Plaintiffs claim, endangers their ability to earn a living. Plaintiffs also allege that since they are not classified as Uber employees, Uber is able to avoid providing any type of benefit to drivers as well as charging them for business expenses obtained by the company.
Plaintiffs are seeking injunctive relief requiring Uber to come into compliance with state, city and federal laws.