Uber, Lyft Saved $413M Using ‘Contractors,’ Labor Group Says

Law360 (May 7, 2020, 4:54 PM EDT) — Uber and Lyft would have contributed more than $400 million to California’s unemployment insurance fund since 2014 had they classified hundreds of thousands of drivers as employees instead of independent contractors, according to a report released Thursday by a labor group affiliated with the University of California, Berkeley.

The UC Berkeley Labor Center found that the technology platforms avoided paying $413 million into the state’s unemployment funds from 2014 to 2019 by classifying drivers as independent contractors and failing to pay the tax rate of 3.4% of compensation they would have been required to pay per employee.

“By not paying into…

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