Uber Hit With Class Action Over ‘Winter Warmup’ Driver Promotion

Last week, the online ride sharing service Uber was hit with a putative class action lawsuit alleging that the company breached the terms of a winter driving promotion it offered its drivers.

Lead plaintiff Kimberly Berger, an Uber driver, alleges in her class action lawsuit that she and other California drivers were not paid according to the terms of the “Winter Warmup” driving promotion.

According to the Uber class action lawsuit, Uber’s promotion allegedly guaranteed minimum rates to participating drivers who met a set of conditions. The terms included accepting 90 percent of trips, averaging at least one trip an hour and being online for almost the entire hour of every hour the drivers worked.

According to the Uber class action lawsuit, Uber offered minimum hour rates from $16 per hour to $26 per hour, based on the time period, with the highest hour rates for Friday and Saturday nights. However, Berger alleges that Uber unfairly paid the fees as an average gross hourly rate instead of a minimum rate for each hour.

Additionally, fees were deducted by Uber from the rates and “[a]s a result,” the Uber class action lawsuit alleges, “the actual hourly rates for peak, regular, and nonpeak hours, were $20, $12, and $10 per hour, and not the $26, $20, and $16 per hour advertised.”

“Uber’s ‘Winter Warmup’ did not provide a clear explanation of how the guarantee worked,” Berger alleges in her class action lawsuit.

“Based on the promotional email, Uber Drivers were led to believe that as long as they accepted 90% of trips, averaged at least 1 trip per hour, were online for 50 minutes of every hour worked, and completed trips in Orange County and Los Angeles, they would be guaranteed the advertised rates of $26/hr for Peak time, $20/hr. for Regular time, and $16/hr. for Non-Peak time,” the Uber class action lawsuit continues.

“Uber did not disclose that the hourly guarantee would be calculated based on a weekly, or per pay period, gross average all hours worked by Uber Drivers, and not on an hourly basis as promised in the Uber ‘Winter Warmup’ guarantee promotion,” Berger further alleges. “Uber did not disclose that the ‘Winter Warmup’ hourly guarantee reflected an average gross hourly rate, before Uber fees were subtracted.”

Berger seeks to represent a Class of “[a]ll Uber Drivers (aka ‘Transportation Providers’) who participated in Uber’s ‘Winter Warmup’ guarantee promotion beginning in or about January 2015 in California.”

According to the class action lawsuit, Uber breached the terms of the “Winter Warmup” contract with its drivers. Berger also alleges that Uber violated California state business law.

Berger seeks unspecified damages, attorneys’ fees and a statement from the court that Uber’s payment practices for the promotion violate California state law.

Another Uber class action lawsuit has hit the popular online ride sharing service. The class action alleges that Uber drivers should be considered employees, entitled to protection under employment laws, while the company insists its drivers are independent contractors, not employees. Last month, Uber asked to hold that action while it appeals a decision from another case where the court held Uber’s arbitration agreements from 2014 and 2015 unenforceable.

Berger is represented by Christopher J. Hamner and Amy T. Wootton of Hamner Law Offices APC.

The Uber Winter Warmup Class Action Lawsuit is Berger v. Uber Technologies Inc., Case No. 3:16-cv-00041, in the U.S. District Court for the Northern District of California.

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