Are Uber and Lyft Drivers Eligible for Workers’ Compensation in Tennessee?

The quick answer is the Uber and Lyft operators in Tennessee are not eligible for workers’ compensation. If another driver is at fault for their accident, operators can file a personal injury claim against the responsible driver. Regardless of fault, operators who use Uber or Lyft’s Optional Injury Protection can receive payment of their medical bills and lost income – up to certain limits/caps. If a rideshare accident is fatal, the family should be eligible for certain survivor’s benefits – up to certain limits/caps.

Why aren’t rideshare operators eligible for workers’ compensation benefits?

In Tennessee, employers who have five or more employees must carry workers’ compensation insurance for their employees or satisfy the self-insurance requirements. However, a rideshare driver does not qualify for workers’ compensation benefits because they are not considered employees. Independent contractors are not eligible for worker’s compensation.

Tennessee considers rideshare operators as independent contractors. There are tests used to determine if a worker is an employee or an independent contractor. Tennessee uses the following tests to assess a driver’s job status – whether they are an employee or an independent contractor.

• Control of the worker’s performance. Uber or Lyft drivers are independent contractors because they decide what hours they work and which rides to accept.
• Termination of employment. Employers generally must have a good reason to fire an employee. Employers don’t need a good reason to fire an independent contractor. Since Uber and Lyft generally can fire a driver at any time without any reason, rideshare operators are considered to be independent contractors.
• How the driver receives compensation. Uber and Lyft drivers normally receive a percentage of the amount the passenger pays for each ride. Drivers normally receive a 1099 form that requires that drivers pay all of their federal taxes without any contribution from their employer. Uber and Lyft drivers do have the benefit of being able to deduct any legitimate business expenses for the operation of their vehicles. Again, the payment method for rideshare operators qualify them as independent contractors.
• The schedule of the worker. Uber and Lyft drivers enjoy the ability to work at the hours of the day that suit their interests. There’s no need to punch a time clock or work a specific number of hours in a week. The ability to control your hours is another reason Uber and Lyft operators are independent contractors.
• The ability to work for other employers. While driving an Uber or Lyft is the sole job for many drivers, Uber and Lyft drivers generally have the right to work for other companies. Many rideshare drivers have multiple jobs. This test also indicates that rideshare drivers are independent contractors.

Are there states where Uber and Lyft operators can claim workers’ compensation?

California enacted a law that makes most gig workers employees and not independent contractors. Gig workers are workers who use Internet apps to make a living. Since Uber and Lyft drivers use Internet apps to make a living, the California law applies to them. California rideshare operators are thus generally eligible for workers’ compensation. Some exceptions may apply.

Tennessee has not enacted a law similar to California’s and is not likely to do so. For now, and the immediate future, rideshare operators cannot claim workers’ compensation in Tennessee.

What insurance options are available for Uber and Lyft drivers who are in an accident?

If another driver causes an accident with a rideshare operator, the rideshare operator can file a personal injury claim against the negligent driver. The rideshare operator can seek damages for their medical bills, lost income, pain and suffering, car damage, and other financial and personal damages.

Uber does offer optional insurance protection. Uber drivers in Tennessee do need to pay for this insurance. The cost is $0.024 a mile where the operators’ app is on. Uber pays for the OIP insurance in California, Massachusetts, and Minnesota. In Washington, Uber drivers may be eligible for workers’ compensation.

Uber’s OIP benefits include the following:

• Medical expenses for an accident up to a maximum $1,000,000.
• Temporary disability benefits up to a maximum of $500 per week.
• Continuous disability benefits up to a maximum of $500 per week.
• Accidental death benefits up to $50,000.
• Survivor benefits up to a maximum of $150,000.
• Accidental dismemberment up to a maximum of $200,000.

Wagner Workers’ Compensation and Personal Injury Lawyers can explain how these benefits work and how they compare to  workers’ compensation benefits and personal injury benefits. For starters, neither OIP or workers’ compensation pay for your pain and suffering. Uber may control which doctors you can see if they pay OIP insurance.

Rideshare operators can use their own health insurance if they have health insurance. It might be a good idea to buy collision insurance which pays for the damage to your car, regardless of fault, up to the policy limits.

Most rideshare injuries mean that drivers will lose significant time from work and will need expensive medical care. At Wagner Workers Compensation & Personal Injury Lawyers, we’re here to explain which policy protects you if you are in an accident while driving. Call our rideshare lawyers or fill out our contact form today to schedule a free consultation. We’ve helped numerous accident victims in Chattanooga, Cleveland, and North Georgia obtain the compensation they deserve.