The California Unemployment Insurance Appeals Board Rules Super Shuttle drivers are NOT independent contractors

The California Unemployment Insurance Appeals Board (CUIAB) finds that Super Shuttle drivers, to and from the Airports, are NOT independent contractors.  In this important decision the CUIAB finds that Super Shuttle must pay payroll taxes for its drivers whom it has steadfastly claimed were independent contractors.  Super Shuttle will now be responsible for contributions for unemployment insurance, disability insurance and payroll taxes.   This will lead to a large liability on the part of Super Shuttle.  It will also support lawsuits filed against Super Shuttle for various wage and hour violations.   It will also assist in an unfair labor practice our office has filed to test their misclassification under the National Labor Relations Act. This should serve as a reminder to employers who abuse their employees by misclassifying them as independent contractors.

By David Rosenfeld

Legal Developments