Are Rideshare Drivers Independent Contractors?

Are rideshare drivers independent contractors? Most rideshare drivers are independent contractors, meaning they are not employees of the rideshare company. 

This is an important distinction for anyone filing a lawsuit against the at-fault party in their accident. If you were hurt in a rideshare accident, speak to a Las Vegas rideshare accident lawyer to learn how this factor could play a role in the outcome of your case.

Rideshare Drivers and Independent Contractor Status  

Recently, a tragic accident happened in the Las Vegas area where an Uber driver was killed while working for Uber. The driver, transporting passengers, was hit by a suspected drunk driver and killed. Given that the deceased worked for Uber, the question is whether workers’ compensation will cover the deceased’s benefits. 

As everyone is likely aware, Uber and Lyft are in Nevada as ride-share options. These are very popular transportation options and offer a competitive alternative to taxis. Uber and Lyft “employ” drivers who are compensated for rides they give.

However, Uber and Lyft consider drivers independent contractors rather than employees. Accordingly, upon information and belief, Uber and Lyft do not provide workers’ compensation insurance in Nevada. You still have rights after an accident involving one of these vehicles, but our rideshare accident attorney will need to establish fault and seek compensation from those responsible.

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Who Is an Independent Contractor in Nevada

To understand a bit more about what an independent contractor is in comparison to an employee, you have to learn a bit about the state’s laws related to the two very different applications under NRS Chapter 608. 

Though some situations differ, this is by far the most common application of independent contractor status in rideshare accidents in Nevada. Nevada uses a five-part test to determine whether an employee/employer relationship exists under the Industrial Insurance Act:

1.       The degree  of supervision
2.       The source of wages
3.       The existence of the right to hire and fire
4.       The right to control hours and location of employment
5.       The extent to which workers’ activities further the general business concerns of the alleged employer. 

If you are a rideshare driver who is injured in an accident, understanding your rights is very important. If you are hurt by a rideshare driver, alternatively, this is less important in seeking fair compensation.

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When Rideshare Drivers Suffer Injuries

Whitely v. Jakes Crane & Rigging, 95 Nev. 819, 603 P.2d 698 (1979). Keep in mind that just because an employer labels someone as an independent contractor does not mean they actually are, by law. The issue of whether Uber and/or Lyft must provide workers’ compensation in Nevada has not been litigated.

It has, however, been filed in federal court in California. O’Connor v. Uber Technologies, 82 F.Supp.3d 1133 (9th Cir. 2015). The court did find that Uber drivers were employees. Using current Nevada law and the five-part test, it would appear as though the Uber driver who was killed could be considered an employee. 

Uber drivers are supervised, as they are assigned rides and destinations, and are also rated by passengers. If the ratings are low, Uber has the right to terminate them, and they will. Further, Uber pays wages and controls the locations of all rides dispatched to Uber drivers. 

Although Uber drivers control their own schedules, it appears that schedules are the only thing they can control. Therefore, it is likely that there is, in fact, an employee-employer relationship. Based on the above analysis, the driver who was killed in the tragic accident while working for Uber may be entitled to workers’ compensation benefits in Nevada.

What to Do If You Are Hurt as a Driver

If you are in an accident that causes you injuries while you are working as a rideshare driver, we encourage you to reach out to our workers’ compensation attorney to discuss your legal options. 

Though rideshare companies consider drivers independent contractors, we can represent you in seeking legal action against those who do not treat you fairly. We encourage you to reach out to a Las Vegas car accident lawyer now.

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When a Rideshare Driver Causes You Injuries

If you are in an accident involving a rideshare driver, you have the legal right to seek action against those who you can show are at fault, under the rights of personal injury. In these situations, our rideshare accident lawyers will examine all evidence in your case and gather any details that provide clarity on fault. Some factors that will play a role in these accidents include the following:

• Driver providing service. If the rideshare driver was logged into the app, had picked up a ride, and was either en route to that passenger or had the passenger in the vehicle, the rideshare company is financially liable for injuries to others.
• Driver logged in. If the rideshare driver was logged into the app but did not pick up a ride just yet, then the rideshare company’s contingent liability policy applies. We will seek damages against that policy, which is substantially less.
• Driver not providing services. If a rideshare driver strikes you, but they were not logged into the app, you can file a claim under the driver’s personal liability insurance.

Determining the details of these cases is imperative for our legal team to take action to protect you. We need to know who is at fault: the driver, the rideshare company, another driver, or another party, and we use evidence to back up and substantiate these allegations. Take a look at our calculator for personal injury settlements to see what your losses may be based on other cases like your own.

Set Up a Consultation with a Rideshare Accident Lawyer Now

No matter what happens to you, whether you are a rideshare driver or the victim of one, hiring a skilled rideshare accident lawyer is one of the most important decisions you can make. It can protect your future, give you the financial stability you need for years to come, and help you recover fairly. 

Call Shook & Stone Injury Lawyers to schedule a free consultation with a Las Vegas rideshare accident attorney.