Uber called its recent union deal ‘historic.’ A new complaint alleges it was actually against the law.
The law is one of the hottest topics in American labor and employment law, with labor leaders and employers accusing each other of engaging in a decades-long campaign of intimidation, fraud, and lawsuits.
The Supreme Court recently heard arguments in Burwell v. Hobby Lobby, and is expected to rule on the issue, but it’s unclear when or how that decision will affect the industry and the millions of American workers who rely on Uber and other ride-hailing companies.
But for those workers, the recent deal between Uber and the California Labor Federation, which was signed back in June, was “historic,” according to Uber.
It’s a landmark case that could potentially upend hundreds of thousands of worker protections nationwide, according to Uber, but it’s also a complicated one.
The case revolves around a “tip credit” that Uber has been using to determine how many drivers it can employ in California, according to a recent article by The Verge. The company previously used the tip credit model in San Francisco, where it employs over 300,000 drivers and is the second largest driver in the country. Earlier this year, the city’s chief business licensing officer, Bill Liccardo, declared Uber a “public nuisance” that was illegally operating in violation of its permit.
In response, Uber sued the California Labor Federation on behalf of its drivers and filed a summary judgment motion against the state in which they argued that the tip credit model violates state law.
The case has been closely watched because of the potential impact the decision could have on ride-hailing companies in other states.
But if Uber prevails in its case against the California Labor Federation, it’s one of four cases that could potentially impact workers all across the nation.
Those four cases, according to Uber, “could have the largest impact on the entire American labor and employment landscape.”
Uber’s argument against the tip