Federal Judge Grants Class Action Status to Uber Lawsuit

A California federal judge has granted class action status to the Uber lawsuit claiming that the ride-hailing company has misclassified its drivers as contract workers.

U.S. District Judge Edward Chen made the decision in a Tuesday ruling, which opens the lawsuit up to a larger pool of California Uber drivers interested in joining the class action.

There are more than 160,000 potential Class Members in California, who have worked as Uber drivers.

The California federal judge did deny several sub-classes proposed by the plaintiff, which included the reimbursement of other expenses.

There was a hearing in early August to determine if this Uber wage and hour lawsuit can qualify as a class action lawsuit.

The hearing focused on the amount of control Uber has over its drivers and if there was enough similarities between the drivers in order for them to be grouped together.

Uber argued that the contracts it has with its drivers are more similar to licensing agreements not labor contracts. The ride-hailing company identifies itself as a company that provides the technological platform that drivers and riders are able to use through its app. However, Judge Chen finds the idea dubious.

He also did not agree with Uber that its drivers were too different to be classed together. Judge Chen explained that the drivers have common claims related to being misclassified as contractors and for the reimbursement of some tips.

“There is inherent tension between this argument and Uber’s position on the merits,” Judge Chen wrote. “[O]n one hand, Uber argues that it has properly classified every single driver as an independent contractor; on the other, Uber argues that individual issues with respect to each driver’s ‘unique’ relationship with Uber so predominate that this court — unlike, apparently, Uber itself — cannot make a classwide determination of its drivers’ proper job classification.”

Plaintiff Douglas O’Connor’s attorney argued that the agreements that Uber has with its drivers meet seven-out-of-nine criteria that is used in California to determine if someone is a contractor or an employee.

The attorney also said that even though 400 “happy” Uber drivers provided testimonials in support of their contractor status that the judge should make his decision based on the best policy not merely “what people want.”

Uber has been accused of dodging California labor law regulations by misclassifying employees as independent contractors and allegedly identifying itself as a “technology company.”

Uber connects people who need rides to drivers through an app, making Uber different from a traditional taxi company. Uber has relied on its company app to hire willing drivers as independent contractors, to keep the flexibility needed for its service.

If drivers work as independent contractors, then they are not entitled to employment benefits under California labor laws.

The class certified by Judge Chen includes all California UberBlack, UberX and Uber SUV drivers who “signed up to drive directly with Uber or an Uber subsidiary under their individual name, and are/were paid by Uber or an Uber subsidiary directly … and did not electronically accept any contract with Uber or one of Uber’s subsidiaries which contain the notice and opt-out provisions previously ordered by this Court.” The class includes those who drove for Uber since Aug. 16, 2009.

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