$8.4M Uber class action settlement over worker misclassification approved

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Update:

• A settlement agreement worth $8.4 million between Uber and drivers who argued they were misclassified as independent contractors has been approved by a California federal judge. 
• The settlement puts an end to claims by drivers that they should have been classified as employees rather than as independent contractors. 
• Drivers argued that being classified as independent contractors kept them from being able to receive certain benefits, such as paid time off and health insurance. 
• Uber drivers who had opted out of the arbitration clause in their initial employment agreements with the company were eligible to be part of the class action lawsuit.

(Oct. 17, 2019)

A recent Uber driver California class action claims that the ride sharing company wrongfully classifies their drivers as independent contractors.

Plaintiff Thomas C. has reportedly worked as an Uber driver since 2012 in the San Francisco area. Although Uber has classified Thomas and other drivers as independent contractors, Thomas’ recent Uber class action claims that this is inaccurate due to the control that Uber has over their drivers.

While driving for Uber, Thomas argues that he and other drivers “wear the ‘hat’ of Uber” opposed to operating their own transportation business under the company’s name. Uber doesn’t allow customers to request certain drivers and assigns rides to drivers – allegedly dictating when and where drivers do their job.

Thomas also claims that Ubers “requires its drivers to abide by a litany of policies and ruled designed to control the drivers’ work performance.”

The ride sharing company reportedly retains the right to fire a driver at any time, including if the company believes the driver has behaved inappropriately or violated Uber’s policies. Consumers feedback is reportedly another justification for termination, with Uber reportedly firing drivers if their customer ratings are inadequate.

These factors reportedly mean that Uber driver employees cannot be classified as independent contractors due to the control the company has over the drivers. Instead, Thomas argues that Uber drivers are full fledged employees entitled to the benefits of this classification. Thomas references recent court decisions and laws that support his claims that Uber controls far too much of their drivers’ jobs to classify them as independent contractors.

“Uber’s continued misclassification of its drivers as independent contractors is willful misclassification in violation of [California labor laws],” the Uber driver California class action lawsuit claims.

Based on the drivers allegedly correct classification, Thomas claims that Uber fails to properly compensate him and other drivers for their work.

Uber Driver California Labor Law Violations

Uber allegedly fails to reimburse drivers for the expenses they incur while driving for the ride sharing company. These expenses reportedly include maintenance, gas, insurance, and phone/data costs. California law reportedly requires employers to reimburse these costs for their employees.

Additionally, Thomas claims that Uber fails to pay their employees minimum wage. Although the drivers are paid for their work, Thomas claims that the wages to do amount to minimum hourly wage after accounting for expenses and “other deductions taken from their pay.”

He argues that drivers should be paid an hourly rate for transporting people, driving to pick up passengers, and driving between rides while waiting their next ride assignment.

Other violations reportedly include the failure to pay overtime. California requires employers to pay premium overtime wages at one and a half times an employee’s hourly wage for all hours worked over 40 hours in a single work week and more than 8 hours in a single work day. Uber reportedly fails to provide this premium pay to their drivers.

Thomas also argues that Uber violates California law by failing to provide itemized wage statements to their drivers, yet another allegedly violation of labor codes in the Golden State.

Thomas seeks to represent a Class of Uber drivers who worked for the company in California.

The Uber Driver California Class Action Lawsuit is Case No. 3:19-cv-06462-JCS in the U.S. District Court for the Northern District of California.

Join a Free Uber & Lyft Class Action Lawsuit Investigation

If you work as a Lyft or Uber driver in California, you may have been misclassified as an independent contractor, and you may qualify to join this California independent contractor class action lawsuit investigation.

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