UBER · 10-Q · 2026Q2 · Full report

Driver Classification Developments

Uber Technologies, Inc · 2026-08-05 · Importance 29 · Surprise 24

Uber faces worker-classification challenges in courts, legislatures, and government agencies across the United States and internationally, including California litigation initiated by the California Attorney General and city attorneys in San Francisco, Los Angeles, and San Diego. Proposition 22 has required additional spending for guaranteed minimum earnings, injury-protection insurance, and health-care subsidies, although Uber does not expect these costs to be material. Reclassification of Drivers as employees, workers, or quasi-employees could materially increase wage, benefit, payroll-tax, social-security, and penalty costs and could reduce Driver supply because of diminished flexibility.

Key facts

• Driver classification litigation: California complaint filed May 5, 2020 by California Attorney General and city attorneys alleging drivers are misclassified against Uber and Lyft seeking injunction and monetary damages source
• If Drivers are required to be classified as employees Uber would incur significant additional expenses including wages, benefits, social security contributions, taxes and potential penalties and may not have adequate Driver supply source
• To comply with Proposition 22 Uber has incurred and expects to incur additional expenses including a guaranteed minimum earnings floor for Drivers, insurance for injury protection and subsidies for health care, and does not expect these changes will have a material impact on the business source