Taxicab drivers are persons who offer fee for service auto transportation within a limited area.
A driver is an independent contractor if all of the following criteria are substantially met.
The driver owns and drives his or her own cab, or leases it on a flat rate basis and pays a specified rental on a daily, weekly, or similar time basis.
The driver is free to work the shift he or she chooses, and there is no control over when and where the driver works.
The driver's sole compensation is the fares and tips collected from patrons.
The driver is required to comply with government rules and regulations and with firm regulations that are meant to ensure proper care and handling of the cab.
The driver is not required to report his or her whereabouts and is not subject to instructions on where to seek patrons.
If the driver leases the cab, the lessor is interested only in receiving the cab rental and, in many cases, payment for gasoline and oil that the driver is required to buy from the lessor.
The opportunity for profit or risk of loss rests with the driver, not the lessor.
A taxicab driver is an employee if all the following criteria are substantially met.
The employer exercises control over the driver while the driver is in possession of the cab.
The driver must work during specified hours or on assigned shifts, pick up passengers on call, and report his or her whereabouts periodically.
The driver must account for fares collected.
The employer requires that the driver perform the services personally.
The employer gives instructions on matters of appearance, behavior, manner of seeking patrons, routes, order of services, and time off from duty.
Payment is in the form of a salary or salary plus a percentage of fares.
The driver is required to report personally and regularly or furnish written reports.
There are no business expenses on the part of the driver.
Both parties have the right to terminate the relationship at any time.
There is no investment or opportunity for profit or risk of loss on the part of the driver.
10 SR 1852
June 11, 2008