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Court Rules Oakland Friendly Cab Drivers Are Employees

The United States Court of Appeals for the Ninth Circuit has upheld a decision of the National Labor Relations Board declaring drivers for Oakland’s Friendly Cab and six other companies under the same ownership to be company employees. Employee status gives the drivers the right to have union representation and collective bargaining over the terms and conditions of their employment.

The drivers are members of the East Bay Taxi Drivers Association, and are represented by Teamsters Union Local 70. They have been fighting for years for the right to organize and bargain collectively. Company owners claimed the drivers are independent contractors and do not have the right to unionize.

Friendly and the other companies are run by Surinder Singh, the company manager, and her husband, Baljit Singh, company president. They operate eighty taxis in Oakland and other East Bay cities, leasing cabs by the week for $450-600.

The court found in the drivers’ favor despite the fact that they do not work set hours, are termed “independent contractors” in their lease agreements, receive no benefits and do not have taxes withheld from their earnings. The court said there was “substantial evidence in the record that Friendly exercises significant control over the means and manner of its drivers’ performance.”

The most important factor in determining that the drivers were employees, the court said, was the companies’ refusal to allow drivers to obtain their own customers. Drivers were prohibited from using cell phones or distributing personal business cards on the job.

The court also cited a number of other factors that led to its conclusion that the drivers were employees. Drivers were required to comply with a Company Policy Manual and Standard Operating Procedures. The manual included driving instructions and imposed a dress code.
Drivers were disciplined for refusing dispatch orders. They were required to accept company vouchers and pay “processing fees” when turning them in. They had to carry advertising on the cabs without receiving revenue. Subleasing the cab to other drivers was prohibited.

The decision requires the companies to negotiate with the drivers group over contract terms. The companies could be penalized for failure to negotiate in good faith.