In case you’re unaware, there is a massive legal battle going on right now between Uber and three of its drivers in California. On the surface, that might not seem like a big deal but these three drivers could ultimately change the way Uber’s entire business model operates if they are successful with this lawsuit.
At stake, is the vaunted ‘independent contractor’ classification that Uber and most other on demand companies apply to their workforce. It’s estimated that companies like Uber save up to 30 percent of payroll tax costs by classifying workers as independent contractors instead of employees. And when you have a few hundred thousand employees, that’s a whole lot of cash at stake.