Introduction:
If anyone used the Uber Application as a Driver in California or Massachusetts between August 16, 2009, and February 28, 2019, and if anyone are not bound by Uber’s arbitration clause (either because you validly opted out of arbitration or because Uber has no record of your acceptance on an arbitration agreement), anyone could get a payment from a class action settlement.
Company details –
Uber Technologies, Inc. (Uber) is an American mobility as a service provider, allowing users to book a car and driver to transport them in a way similar to a taxi. It is based in San Francisco with operations in approximately 72 countries.
Case details –
Two class action lawsuits claim that Uber violated various laws and regulations by classifying drivers in California and Massachusetts as independent contractors rather than employees. Uber denies these claims. The Court did not decide who was right, but both sides in these lawsuits agreed to a settlement.
The lawsuit revolved around whether Uber drivers in California and Massachusetts were classed as contractors or employees, in which case they would be entitled to other benefits, driving the taxi start-ups costs higher.
However, with this significant payment of money, and attention that has been drawn to this issue, stands as a stern warning to companies who play fast and loose with classifying their work force as independent contractors
The plaintiffs had argued that as Uber drivers, they should be classified as employees, and entitled to the benefits stipulated under the states labour laws.
Drivers were pursuing individual arbitration after an appeals court ruled in September that they could not combine their cases into a class action lawsuit. In a case that now goes back years and covers nine states, some 160,000 drivers had been seeking to be classified as employees rather than independent contractors, partly in order to get compensated for expenses related to driving for the company, such as gasoline used and vehicle maintenance.
Result of the case:
Uber settles for 11 cents per mile for all on-trip miles that were driven for Uber bypasses addressing those specific details.
The settlement is tentative depending on a sufficient number of drivers signing the agreement among other factors, and it could take up to six months for payments to get to drivers
A class action lawsuit, combining several people into one case, would have gained economies of scale in terms of legal costs, and that could have meant a stronger recovery payout for the group.
Thankyou.