Uber continues struggle with workers’ compensation problem

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Uber making it easier for drivers to purchase occupational accident insurance but does not solve the workers’ compensation problem.

We saw an interesting BuzzFeed article reporting on Uber’s pilot program for drivers who want to purchase insurance coverage for on-the-job injuries.

Customers in eight states will see a 5 cent per mile increase while drivers will pay an additional 3.75 cents per mile. Benefits up to $1 million for medical expenses, up to half of a driver’s average weekly earnings, and a maximum of $150,000 in survivor benefits will be offered.

Uber is at the forefront of the gig economy and shows how technology is creating problems for the traditional workers’ compensation model. Disputes about whether Uber drivers are independent contractors or employees have been raging. This distinction has significant legal and tax consequences. Independent contractors get none of the protections that employees currently receive.

Employees hurt on-the-job in Michigan are entitled to unlimited medical treatment and 80% wage loss benefits. Payments continue for the entire length of disability. Employers are responsible for purchasing workers’ compensation insurance and it pays regardless of fault. In exchange, employers get immunity from civil lawsuits. Forcing Uber drivers to purchase subpar occupational accident insurance is not the answer.

Michigan lawmakers passed new auto insurance laws in 2016 to address transportation network companies. Included was a test to determine if a driver was an employee or independent contractor. This creates a potential hodgepodge of legal standards for workers’ compensation. What other gig economy jobs will get their own test and be excluded from workers’ compensation?

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.

Related information:

Are new workers’ compensation laws needed for Uber and Lyft drivers?

Photo courtesy of Creative Commons, by Michel Curi.

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Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.