Home -> Law Blog Directory -> Labor & Employment Law Blogs -> California Labor & Employment Defense Blog
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense
Find a Local Lawyer
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402
Labor & Employment Law
: California Labor & Employment Defense BlogEast Bay Taxi Drivers Association v. Friendly Cab Co., -- Taxi Drivers Found to be Employees, Not Independent Contractors
The Ninth Circuit’s decision earlier this year in East Bay Taxi Driver’s Association v. Friendly Cab, Inc., 512 F3d 1090 (2008), illustrates how easily courts will pierce through the outward appearances of a “business” contract to find that, at bottom, it is just a glorified employer-employee relationship.
The case involved taxi drivers who were seeking to form a union to bargain with the company that leased their cabs. As employees they would be covered by the National Labor Relations Act (“NLRA”) and could force the company to recognize their union and bargain collectively. This required the Court to detrmine their true status. As the Court explained:
‘Employees' work for wages or salaries under direct supervision. ‘Independent contractors' undertake to do a job for a price, decide how the work will be done, usually hire others to do the work, and depend for their income not upon wages, but upon the difference between what they pay for goods, materials, and labor and what they receive for the end result, that is, upon profits.
The drivers leased their vehicles and kept the fares that they generated. Nevertheless, the Ninth Circuit upheld the NLRB’s determination that they were mere “employees.” The main reason for this outcome was the company’s tight control over the drivers’ operations. For example, the drivers were required to only respond to the company’s radio dispatches and could not pick up fares on their own or advertise their own services apart from the company. The company's high degree of control thus negated the drivers’ opportunity to generate any real “entrepreneurial profit” through their own initiative.
We have blogged repeatedly about the difficulty of maintaining a proper independent contractor status. Unfortunately, the various multifactor tests promulgated by courts and administrative agencies are remarkably unhelpful for predicting which side of the line a worker falls. As the outcome of the East Bay Taxi case illustrates, however, it is probably more useful to view the standard as a simple determination of whether the company’s control prevents the individual from making significant profit from his own business decisions.
Full post as published by California Labor & Employment Defense Blog on August 05, 2008 (boomark / email).
Employee Lawsuits: Negligent Hiring and Retention
Employers must check references, criminal records, other background material.
Pedestrian Injured by Taxi Awarded $1 Million
Pedestrian Injured by Taxi Awarded $1 Million
Potential Class Action Suit
For Underpayment of Truck Drivers
Recovery One, Cyber Asset, Ascension Recovery - Renovo One LLC
REPOSSESSION DRIVERS - UNPAID OVERTIME
Overtime for Programmers
alleging that some companies try to avoid paying employees overtime by categorizing them as "salaried" employees.
HIV Funds
Dallas Independent School District pays $336,000 settlement for misappropriated program funds.
Alabama Restaurant Association Hires Legal Council to Help Members Damaged by BP Oil Spill
Alabama Restaurant Association Hires Legal Council to Help Members Damaged by BP Oil Spill>

FedEx Defends Treatment of its Drivers as Independent Contractors, Not Employees
Fed Ex Drivers Look At The Map and Find Their Way To A Class Action
Independent Contractors: New Hampshire Defines, FedEx Whines
NLRB v. Friendly Cab (9th Cir. - Jan. 8 , 2008)
Michigan Businesses Should Be Careful When Using Contracts to Say Workers Aren't Employees
Shuttle Drivers Sue SuperShuttle; Claim They Were Improperly Called "Independent Contractors"







