Navigating the Legal Responsibilities of Being a Rideshare Driver
Tips from Florida attorneys on being an independent contractor
By Andrew Brandt | Reviewed by Canaan Suitt, J.D. | Last updated on June 3, 2024 Featuring practical insights from contributing attorneys Donna Ballman and Gary Andrew CostalesUse these links to jump to different sections:
- Rideshare Drivers Are Considered Independent Contractors
- Legal Responsibilities of Being an Independent Contractor
- Contract Law and Independent Contractors
- Find Experienced Legal Help
At first glance, driving for a rideshare company comes with plenty of perks, like working when you want, for how long you want, with no boss looking over your shoulder. The reality is less rosy.
Rideshare Drivers Are Considered Independent Contractors
First, you’re not an employee of the rideshare service—also called a Transportation Network Company (TNC)—but an independent contractor, a role with its own responsibilities.
“Approach it as if you’re the owner of a business,” recommends Donna Ballman, an employment & labor attorney at Donna M. Ballman, P.A. in Cooper City. “Be aware of things like insurance coverage and other issues you may need to examine in a business model that you’re used to having an employer taking care of.”
Gary A. Costales, an employment & labor attorney at the Law Offices of Gary A. Costales in Miami, agrees. “You have to have good habits for keeping records,” he says, “because those will carry forward into the future for Uber drivers and Lyft drivers.”
Legal Responsibilities of Being an Independent Contractor
One way to make record-keeping easier? Obtain a credit card, says Costales, and use it solely for your rideshare-related expenses. That way, come tax season, you’ll have less digging to do. “You also have to set aside something for the payment of FICA taxes,” he adds. “Even though you’re an independent contractor, you still have to pay FICA and payroll taxes like anybody else. Set that money aside as you go, so you’re not hit with a big tax bill at the end of the year.”
If you’re a new driver and your tax situation seems daunting, Ballman suggests hiring an accountant. “There are probably a lot of things that are deductible that you might not think about, so I do recommend getting some tax advice,” she says.
Perhaps the most important aspect of being an independent contractor is recognizing what state laws apply to you. “Independent contractors need to be more aware of what rights they do and don’t have,” says Ballman. “So things like Title VII, the Florida Civil Rights Act, the Fair Labor Standards Act—those things don’t apply to them. Sometimes contractors think they have rights that they don’t.”
Contract Law and Independent Contractors
While discrimination, workers’ compensation, and unemployment laws don’t apply to rideshare drivers, contract law absolutely does.
“Their situation is governed by whatever contract they signed with their rideshare company,” says Ballman, who recommends having an employment attorney review your driver contract if anything is unclear. “The rideshare contract may give you some rights—as far as under what basis they can terminate your contract and what rights you have if they do. You need to have a copy of that contract and understand what your rights are—especially if they do decide to try and terminate you.”
For Florida drivers who are disheartened by laws and legal decisions that deem rideshare drivers as independent contractors rather than employees, their status on a national level may still be up in the air. “We’ve got a new administration,” says Ballman, “and they’re making a lot of changes to employment law. The U.S. Department of Labor [finalized a rule in January 2024] saying when gig workers are considered contractors on a national level… We are, right now, in a period where we don’t know what’s going to happen. But I believe we’re going to see some changes that are more pro-employee in this administration.”
Find Experienced Legal Help
If you have questions about your legal rights or duties as an independent contractor in a legal dispute, visit the Super Lawyers directory to find an experienced employment law attorney in your area. Learn more about personal injury liability for rideshare drivers when they’re involved in a car accident with other motorists or the complexities of paying taxes in the gig economy.
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