On February 19, 2021, in a big blow to Uber, the Supreme Court of the United Kingdom ruled that Uber drivers are workers, who work for Uber under workers’ contracts, not independent contractors. Further, the court held that Uber drivers are entitled to the national minimum wage, paid annual leave, and other workers’ rights. This ruling will likely have far reaching implications to the entire “gig-economy” in the UK.
Comparatively, the United States uses the terms “employee” and “employees” which are analogous to “worker” or “workers” in the UK. These terms refer to the existence of an employment relationship between between master and servant. The Supreme Court of the United States has not yet taken the position that Uber drivers and other “gig-economy” drivers are employees rather than independent contractors under federal law. Further, the UK’s ruling has no legal effect on Uber drivers in the United States, however state jurisdictions have been able to decide for themselves whether “gig-economy” drivers in their respective states are employees are not.