Uber Workers' Compensation

Uber and Lyft have made ridesharing a popular form of transportation in recent years. All you need to do is request a ride through a service’s app and a driver will pick you up and take you to your desired destination—often at a cheaper price than a taxi cab.

Furthermore, regular citizens can become part-time and full-time rideshare drivers. However, these drivers can also be involved in devastating collisions.

In the event of a car accident resulting in an injury, are Uber drivers eligible for workers’ compensation benefits in Texas? The answer is no.

Uber Drivers Are Not Employees

Uber claims that their drivers are considered independent contractors, who are individuals or entities who provide goods or services under contract. These independent contractors work according to their own schedule, as well as pick and choose their passengers as they please.

Since these drivers are technically not employees, Uber doesn’t withhold their taxes or provide any benefits afforded to regular employees. This includes health insurance, paid sick days, overtime pay, and workers’ compensation.

Driver Injury Protection Program

While Uber doesn’t offer workers’ compensation benefits to its drivers, the company introduced an insurance program in August 2018 that provides coverage for work-related injuries through Aon P.L.C. and OneBeacon Insurance Group. Known as “Driver Injury Protection,” the program is currently available in 40 states and Washington D.C.

The policy applies to drivers who are logged onto the app, picking up passengers, or driving a passenger to their destination. Benefits include up to $1 million for medical expenses (no deductible or co-pay), a maximum $500 per week for earnings replacement (lost wages), and survivor benefits of up to $150,000 for family members (if an Uber driver passes away).

Driver Injury Protection costs drivers 3.5 cents per mile, but since Uber raised its fares by five cents per mile, the increase in fares essentially pays for the coverage. The company keeps about 25 percent of the fare drivers collect, which leaves an extra 3.75 cents per mile for drivers.

If you were injured in an Uber accident in Houston, TX, contact our experienced legal team at Daspit Law Firm today and request a free consultation.