O'Connor v. Uber Technologies, Inc.

82 F. Supp. 3d 1133, 24 Wage & Hour Cas.2d (BNA) 975, 80 Cal. Comp. Cases 345, 2015 U.S. Dist. LEXIS 30684, 2015 WL 1069092
CourtDistrict Court, N.D. California
DecidedMarch 11, 2015
DocketNo. C-13-3826 EMC
StatusPublished
Cited by23 cases

This text of 82 F. Supp. 3d 1133 (O'Connor v. Uber Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Connor v. Uber Technologies, Inc., 82 F. Supp. 3d 1133, 24 Wage & Hour Cas.2d (BNA) 975, 80 Cal. Comp. Cases 345, 2015 U.S. Dist. LEXIS 30684, 2015 WL 1069092 (N.D. Cal. 2015).

Opinion

ORDER DENYING DEFENDANT UBER TECHNOLOGIES, INC.’S MOTION FOR SUMMARY JUDGMENT

(Docket No. 211)

EDWARD M. CHEN, District Judge

Plaintiffs filed this putative class action on behalf of themselves and other similarly situated individuals who drive for Defendant Uber Technologies, Inc. See Docket No. 201-2 (Second Amended Class Action Complaint) (SAC). Plaintiffs claim that they are employees of Uber, as opposed to its independent contractors, and thus are eligible for various statutory protections for employees codified in the California Labor Code, such as a requirement that an employer pass on the entire amount of any gratuity “that is paid, given to, or left for an employee by a patron.” Cal. Lab. Code § 351; see also SAC at ¶¶ 27-28.

Pending before the Court is Uber’s motion for summary judgment that Plaintiffs are independent contractors as a matter of law. As is discussed below, the Court first concludes that Plaintiffs are Uber’s presumptive employees because they “perform services” for the benefit of Uber. The Court next holds that whether an individual should ultimately be classified as an employee or an independent contractor under California law presents a mixed question of law and fact that must typically be resolved by a jury. Finally, because a number of facts material to the employee/independent contractor determination in this case remain in dispute, the Court denies Uber’s summary judgment motion.

I. BACKGROUND

In a nutshell, Uber provides a service whereby individuals in need of vehicular transportation can log in to the Uber software application on their smartphone, request a ride, be paired via the Uber application with an available driver, be picked up by the available driver, and ultimately be driven to their final destination. Uber receives a credit card payment from the rider at the end of the ride, a significant portion of which it then remits to the driver who transported the passenger.

Named plaintiffs Douglas O’Connor and Thomas Colopy drive principally for Uber’s “UberBlack”'service.1 See Docket Nos. 212-1 (Colopy Depo.); 212-2 (O’Con-nor Depo). UberBlack drivers transport passengers in black' sedans (e.g., Lincoln Townears) or other limousine-like vehicles. Docket No. 223-37. O’Connor received access to a luxury vehicle through at least two different companies, SF Bay and Bay Network Limo. See O’Connor Depo. Tr. at 118:12-122:15 In exchange for providing a car and paying all of O’Connor’s expenses (e.g., fuel and tolls), SF Bay received sixty percent of O’Connor’s earnings from transporting Uber passengers. See id. at 124:12125:4. Bay Network Limo provided O’Connor with a luxury vehicle for a flat $735 weekly fee, which included maintenance and insurance on the vehicle, but no other expenses. See id. at 135:4136:14. O’Connor was free to use Bay Network Limo’s vehicle as much or as little as he chose. Id. at 135:16-136:3. Colopy had similar arrangements with two third-party limousine companies that provided him with a vehicle necessary to work as an UberBlack driver. See Colopy Depo. Tr. at 98:24-102:22; 126:11-129:4.

[1136]*1136Named plaintiffs Matthew Manahan and Elie Gurfinkel drive principally for Uber’s “uberX” service. Docket Nos. 212-3 (Ma-nahan Depo.); 212-4 (Gurfinkel Depo.). uberX drivers transport passengers in their own personal vehicles, which are typically hybrids or other “mid-range” cars. Docket No. 223-37. Manahan, a self-employed screenwriter in Los Angeles, drives for uberX, as well as Lyft and Sidecar, two of Uber’s competitors. Manahan Depo. Tr. at 71:3-6; 92:18-21. Manahan transports passengers in his personal vehicle — a 2012 Kia Soul. Id. at 110:17-21. Gurfink-el began driving for uberX while he was employed full-time as a “fulfillment and project manager” by a company called ADL Embedded Solutions. Gurfinkel Tr. at 43:4-13. Two months after he began driving for Uber, Gurfinkel left his job at ADL, and now drives for Uber full time. Id. at 57:17-24.

Before becoming “partners” with Uber, Plaintiffs and other aspiring drivers must first complete Uber’s application process. See Docket No. 223-20; Docket No. 223-28. Applicants are required to upload their driver’s license information, as well as information about their vehicle’s registration and insurance. Docket No. 223-28 at 2. Applicants must also pass a background check conducted by a third party. Id. at 3. Would-be drivers are further required to pass a “city knowledge test” and attend an interview with an Uber employee.2 Docket No. 223-20 at 6740; Docket No. 22329 at 4. Interviewees are instructed to “[b]ring your car, dress professionally and be prepared to stay for 1 hour.” Docket No. 223-20 at 6740.

Once a prospective driver successfully completes the application and interview stages, the driver must sign contracts with Uber or one of -Uber’s subsidiaries (Raiser LLC). See Docket No. 223-15 (Transportation Provider Service Agreement) (Service Agreement); see also Docket No. 223-16 (Driver Addendum Related to Uber Services) (Addendum).3 Those contracts explicitly provide that the relationship between the transportation providers and Uber/Raiser4 “is solely that of independent contracting parties.” See Addendum at 7; Service Agreement at 9. The parties “expressly agree that this Agreement is not an employment agreement or employment relationship.” Addendum at 7; Service Agreement at 9. The relevant contracts further provide that drivers will be paid a “fee” (ie., fare) upon the successful completion of each ride. According to an Uber 30(b)(6) deponent, Uber sets fares based principally on the miles traveled by the rider and the duration of the ride. Coleman Depo. at 187:20-188:16. Because Uber receives the rider’s payment of the entire fare, the relevant contracts provide that Uber will automatically deduct its own “fee per ride” from the fare before it remits the remainder to the driver. See Addendum at 7; Service Agreement at 9. [1137]*1137Plaintiffs presented evidence that Uber typically takes roughly 20 percent of the total fare billed to a rider as its “fee per ride.” See, e.g., Colopy Depo Tr. at 128:15-19.

In this litigation, Uber bills itself as a “technology company,” not a “transportation company,” and describes the software it provides as a “lead generation platform” that can be used to connect “businesses that provide transportation” with passengers who desire rides. Docket No. 213 (Colman Decl.) at ¶ 6. Uber notes that it owns no vehicles, and contends that it employs no drivers. Id. Rather, Uber partners with alleged independent contractors that it frequently refers to as “transportation providers.” Id.

Plaintiffs characterize Uber’s business (and their relationship with Uber) differently. They note that while Uber now disclaims that it is a “transportation company,” Uber has previously referred to itself as an “On-Demand Car Service,” and goes by the tagline “Everyone’s Private Driver.”5 See, e.g., Docket No. 223-3 at 1 (Coleman Depo. Ex. 3); Docket No. 223-6 at 1 (Onboarding Script) (“Our tagline and vision is to be ‘Everyone’s Private Driver.’ ”).6

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82 F. Supp. 3d 1133, 24 Wage & Hour Cas.2d (BNA) 975, 80 Cal. Comp. Cases 345, 2015 U.S. Dist. LEXIS 30684, 2015 WL 1069092, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oconnor-v-uber-technologies-inc-cand-2015.