Are We Employees or Contractors? What does the IRS say?

After some discussion today I've been thinking about the Employee or Contractor debate a lot. I believe that there is a very good case to be made that all Uber drivers are contractors - and I do realize that there is a lot of disagreement on this :)

Let's see what the IRS says about being a contractor and if a case can be made that Uber is violating that. Here's what the IRS says along with a few thoughts:

Behavioral

• When and where to do the work.

Uber requires that we adhere to certain service boundaries. We cannot work in any state that we choose or in any part of the state that we choose - without Uber's approval

• What tools or equipment to use.

Uber requires that our cars meet certain model year and equipment requirements (i.e. 4 door)

• What workers to hire or to assist with the work.

We can not hire or subcontract someone else to assist with our work (wife, son etc)

• Where to purchase supplies and services.

We are required to get vehicle inspections from an Uber approved vendor

• What work must be performed by a specified individual.

We are disallowed from providing additional services during the trip - such as selling water or snacks - or advertising our Jewelry business for example.

• What order or sequence to follow when performing the work.

We are required to drive to a certain location within a certain timeframe - otherwise we are penalized by not receiving a no-show fee if applicable

Financial Control

• Opportunity for profit or loss

A significant number of Uber drivers operate under wage guarantees where a certain per/hour wage is guaranteed by Uber

• Services available to the market

We may not provide additional services.

Type of Relationship

• Permanency of the Relationship

We do not work for a specified length of time for Uber (ie. six month contract) like a contractor would. We can in theory work for Uber for years - just like any employee.

• Services Provided as Key Activity of the Business

Uber is a company that provides transportation to people. We are Uber's drivers thus we provide a Key Activity of the employer

Looking at the above I think that there is definitely a case to be made here