Lawsuit filed against Uber in Indiana

INDIANAPOLIS (WISH) — Uber is being accused of underpaying its drivers in Indiana and now faces a $5 million class action lawsuit. The lawsuit alleges the transportation network company classifies its drivers as independent contractors instead of employees to evade benefits they’d be required to offer.

According to Vess Miller, the lawyer who filed the suit, Uber does not have to pay its drivers minimum wage or offer benefits like lunch breaks or over time because they’re technically independent contractors.

However, Miller says, unlike independent contractors who have the ability to set their own hours, negotiate fees and decide which jobs to take, Uber controls key parts of the business operation. Miller says Uber sets fares and requires drivers to work a certain number of hours. The suit also alleges that Uber has gained significantly from advertising that gratuity is included in the price.

“Uber telling customers there is no need to tip, implying that the tip is included and that the driver is already being compensated for service when in fact the driver is not,” Miller said.

In a statement to 24-Hour News 8, Uber had this to say:

Nearly 90 percent of drivers say the main reason they use Uber is because they love being their own boss. As employees, drivers would have set shifts, earn a fixed hourly wage, and lose the ability to drive with other ridesharing apps-as well as the personal flexibility they most value.

Uber will have an opportunity to respond to the suit. The company just settled a $100 million suit in California and Massachusetts.