Regulations

Judge Rejects Uber Driver Class Action Settlement

Posted on August 18, 2016

A $100 million settlement Uber was ordered to pay to drivers in a class-action lawsuit may not be enough, a judge said Thursday.

Uber had agreed to pay $100 million to drivers in California and Massachusetts who sued over their status as contractors, rather than employees.

Keeping drivers as contractors, not eligible for benefits or other protections for full-time workers, has been instrumental in Uber's astronomical growth and business model. Settling class-action lawsuits over the issue for $100 million allowed Uber to move forward with its business model intact.

Mashable.com article here

A judge on Thursday blocked an $84 million settlement agreement between Uber Technologies Inc. and its drivers. U.S. District Judge Judge Edward Chen found the settlement amount inadequate, but not necessarily because of the core agreement that would net most drivers $24 or less. Instead, the judge found a part of the lawsuit that, under California labor law, allows workers to recover fines that could be assessed by the state, settled for too little.

MarketWatch.com article here

Related Topics: California operators, driver pay, employee vs independent contractor, lawsuits, legal issues, Massachusetts operators, regulatory enforcement, TNCs, Uber, wage lawsuits

Comments ( 1 )
  • Anthony

     | about 3 years ago

    Judge Chen understands the law above and beyond. His actions give all of us hope that no corporation can manipulate the legal system such as uber has done across the nation. Uber played their games with broward county and the lawmakers changed some laws to allow them to operate with inpunity. Bottom line across all the states, every state needs the taxable income from employees for their state. California lost 500 million from independent contractor uber drivers.

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