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Summary: A judge rejected a settlement between Uber and roughly 400,000 of its drivers in California and Massachusetts over a small issue with part of the money payout.
Uber and a group of drivers suing the company over damages and their employee status reached a $100 million settlement only to have it rejected by a federal judge. Some may view the rejection as a good thing for the drivers so that they can take the case to trial but it is unlikely they will win such a large financial award due to many legal hurdles in doing such.
Read Uber, Didi Call a Truce in China to learn more about recent Uber news.
The group of drivers from Massachusetts and California want employer-sponsored benefits from Uber and believe they should be classified as employees. A settlement was finally reached in April stating that the drivers would still be seen as independent contractors but would be allowed to receive a portion of the settlement and other benefits such as access to an appeals panel for drivers who are fired.
Judge Edward Chen rejected the settlement specifically because of a part where a $1 million payout connected to the Private Attorney General Act. Chen believes Uber would have to pay $1 billion should they have gone to trial so $1 million is not enough.
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See Uber Driver Attacked with Kitchen Knife.
Uber and the drivers have a few options to explore. Both parties can return to negotiations to find a new agreement. If they are unable to reach an agreement that a judge will accept, the drivers will likely to Uber to trial. However, if they go to trial, the group of nearly 400,000 drivers may be reduced to only 8,000. This is due to the fact that many of the drivers accepted a contract that states they cannot seek a lawsuit.
Uber is also appealing the class certification awarded by Chen. They argue that there is no “typical” Uber driver so they shouldn’t be considered a class action.
Do you think Uber drivers should be considered employees? Tell us your thoughts in the comments below.
To learn more about Uber’s legal woes, read More Uber Worker Misclassification Lawsuits Filed.
Photo: transportationblog.dallasnews.com
