Are Uber drivers self-employed? In Uber’s classification, yes: drivers are independent contractors, not employees. Uber’s annual report says it believes this because drivers can choose whether, when and where to provide services, are free to work on competitors’ platforms and supply their own vehicle.[1] The same report says a Massachusetts attorney general case filed in July 2020 was resolved in June 2024 with the understanding that drivers would continue to be classified as independent contractors.
That is Uber’s position, not a final answer for every dispute. This guide explains the tests regulators use, where California differs and what the label means for tax. It is general information, not legal advice, and every statement is as of the date of its source.
How does the IRS tell an employee from a contractor?
The IRS looks at the whole relationship through three groups of evidence. Behavioral control asks whether the company controls or has the right to control what the worker does and how. Financial control asks whether the payer controls the business side of the job. The type of relationship looks at written contracts and employee-type benefits such as insurance or vacation pay.[2] If the status is still unclear, either the business or the worker can file Form SS-8 and the IRS makes the call, which the page says can take at least six months.
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What is the Department of Labor test?
For minimum wage and overtime, the Fair Labor Standards Act applies the economic reality of the relationship. The federal rule says the question is whether a worker depends economically on the potential employer for work or is in business for themselves, that labeling someone an independent contractor does not remove the protections, and that the amount of income is not the deciding factor.[3]
The rule itself is in motion. On February 26, 2026, the Department announced a proposal to rescind its 2024 rule and replace it with an analysis built on two core factors, the worker’s control over the work and the opportunity for profit or loss, with other factors considered alongside.[4] The comment period closed on April 28, 2026. The page describes a proposal only, so check the Department’s rulemaking page for whether a final rule has issued.
What does California’s Prop 22 add?
California handles app-based drivers by statute. Proposition 22 says an app-based driver is an independent contractor if the company does not set required log-in dates, times or minimum hours, does not require the driver to accept particular requests, does not restrict work for other network companies except during engaged time and does not restrict other lawful work.[5] In return, the text sets an earnings floor of 120 percent of the applicable minimum wage for engaged time plus 30 cents per engaged mile in 2021, adjusted for inflation afterward, and a quarterly health care subsidy for drivers averaging 15 hours or more of engaged time per week.
Prop 22 was challenged in court. The Supreme Court of California unanimously decided that its provision classifying drivers does not conflict with the Legislature’s authority over workers’ compensation, so voters could legislate on the subject through the initiative.[6] Other states have their own rules, so a California result does not transfer to other places.
Is Uber a job, an employer or freelance work?
People searching these terms usually mix three questions. Is Uber an employer? Legally, for drivers, Uber says no. Is Uber freelance work? In practice, a contractor chooses hours, accepts or declines requests and can use other apps, which is the freelance model. Is Uber considered a job? Drivers do real work, but the legal category decides which protections apply: under the federal rule, minimum wage and overtime cover employees only, and the Fair Labor Standards Act does not treat a contractor label alone as decisive. For company-level context, see what SEC filings show about Uber’s drivers.
What changes for tax when you are self-employed?
Contractor status shifts tax duties to the driver. The IRS puts the self-employment tax rate at 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare, and it applies once net earnings from self-employment are $400 or more.[7] Net earnings means income after allowable business expenses, so record-keeping matters. Detailed deductions depend on your return; for that side, see rideshare tax deductions and tips.
Contractor versus employee: what is different in daily work?
Compare them by function rather than by label. An employee works under the employer’s direction and typically receives wages, overtime and employer-side benefits. A contractor controls the hours, supplies the tools (here, the car and phone), bears expenses and can take other work. Contractors also take on more of the risk that a slow day will not pay. The tests above are how regulators decide which description fits, and the answer can differ by agency: a driver can be a contractor under one test and an employee under another.
What should you check yourself?
Read the agreement you accepted in the app, because terms differ by period and place. Look at what your state says, especially if you drive in California. And before you file, confirm with the IRS or a tax professional how self-employment tax applies to your own net earnings.
