uber.JPG In this photo taken Tuesday, Dec. 16, 2014, a man leaves the headquarters of Uber in San Francisco. (The Associated Press) Uber drivers may use their own vehicles and choose when or if they work, but they're still employees under Oregon law, the state's labor commissioner said. In an advisory opinion issued Wednesday, Bureau of Labor and Industries Commissioner Brad Avakian said Uber drivers are employees because they work for the company's benefit and they're economically dependent on the ride-hailing company. Avakian characterized the opinion as a "helpful explanation" to Uber on how he has interpreted Oregon's labor laws. It doesn't carry the legal force of an order or a ruling against the company. But the new regulatory stance effectively signals to Uber -- and its drivers -- that a case brought against the company could be successful. Avakian said the company isn't to his knowledge paying payroll taxes for its drivers, nor reimbursing expenses or paying into the workers compensation system. "I'm hoping that before anything like that happens, that this opinion will be helpful to Uber and other similar companies in knowing how Oregon's law could be applied," he said. He said that Uber was consulted in the course of the bureau's research. Uber spokeswoman Eva Behrend disputed the findings, saying in an emailed statement that the consultation with the company consisted of a five-minute phone call. "The Oregon Bureau of Labor and Industries issued this opinion without apparently talking to any drivers and after a brief five minute phone call with Uber that came out of the blue," Behrend wrote. "Unsurprisingly, it's full of assertions that are plain wrong. It's disappointing that a public body would have so little regard for the facts." She added that half of Uber's drivers drive less than 10 hours a week. Uber has contended that its role was connecting private contractors with customers. Avakian said that although Uber drivers use their own vehicles and set their own hours, the company maintains complete control over the rates drivers can charge and the technological infrastructure. His opinion follows a ruling on similar issues in California, which carried greater authority but affected just one driver. Uber is also fending off a class-action lawsuit that seeks to have all California Uber drivers recognized as employees. The implication could go far beyond Uber. The opinion didn't mention other companies in the so-called "gig economy," where a network of workers provide generally unskilled labor on demand, usually facilitated through an online marketplace. But it could have ramifications for other start-ups with similar business models, like the ride-sharing firm Lyft and the grocery delivery service Instacart. -- Elliot Njus enjus@oregonian.com 503-294-5034 @enjus
An Oregon regulator ruled yesterday that Uber drivers should be classified as employees under state law, an announcement that could impact the company’s operations there, The Oregonian reports. Brad Avakian, commissioner of the Oregon Bureau of Labor and Industries, stated in an advisory the opinion that Uber drivers should count as employees under Oregon law because they benefit the company and are financially dependent on it, despite being able to use their own cars and choose when they want to work. “Drivers like this deserve a fair share of the profits made by Uber, not just minimum wage,” he said in a statement. The ruling could also have wider implications on various other lawsuits where Uber drivers are trying to be deemed as employees.