Joanna Szabo  |  November 28, 2019

Category: Labor & Employment

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A woman hails a rideshare.A group of Uber drivers who filed an employee misclassification lawsuit against the ride-hailing company recently came to a $20 million settlement agreement. However, after one driver objected to the settlement, the rest of the drivers are now working to urge the Ninth Circuit to continue forward with the final approval for the settlement, despite the one driver’s complaint.

The settlement will bring an end to a years-long class action legal battle. According to the lawsuit, first filed back in 2013, the ride-hailing app misclassified its drivers as independent contractors instead of employees, denying them significant benefits they say they should have been entitled to. These employee benefits include things like health insurance, paid sick leave, and workers’ compensation.

Driver Shawn P. Mendel appealed the $20 million settlement decision, saying that he felt that the deal was insufficient, especially with $5 million of the deal going toward attorney fees and costs. The main plaintiffs, however, asked the Ninth Circuit to affirm the lower court’s order that granted final approval to the settlement agreement and reject Mendel’s appeal. The plaintiffs referred to Mendel as “a serial litigator” and his appeal as “meritless,” and noted that the lower court had already turned away his arguments.

The Uber employee misclassification lawsuit was actually almost settled once before, in 2016, which could have garnered an award of up to $100 million to be distributed among hundreds of thousands of drivers. However, a federal judge reportedly rejected that proposed settlement as insufficient for the number of drivers included. In the years since the number of Class Members has been cut down substantially, so if this $20 million award proceeds, it will only be divided among a few thousand drivers.

As part of the settlement agreement, Uber has agreed to no longer “deactivate” drivers with a low rate of accepted rides. Instead, the company has agreed to give advance warning to drivers before deactivation, have a formal process for appeal deactivation, and offer paths for drivers to become eligible for reactivation.

The settlement agreement doesn’t actually resolve the litigation’s central question as to whether Uber drivers should be classified as employees of the company or as independent contractors. Mendel noted that with this case, “you have a federal judge who’s granting a settlement that allows Uber to continue to operate in violation of federal law.”

Filing a California Wage and Hour Lawsuit

If you work in California and believe that your labor rights were violated, you may be able to file a wage and hour lawsuit and pursue compensation. Filing a lawsuit can help you recover the compensation you’re owed, as well as hold the company responsible accountable for its actions.

Filing an employee misclassification lawsuit can be a daunting prospect, especially if you’re worried about pushback or retaliation from the company you work for. Fortunately, there are anti-retaliation laws in place to protect you, and Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

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One thought on Uber Drivers Fight to Stay on Track for $20M Employee Misclassification Settlement

  1. Chris Golden says:

    I am an uber driver, put me on the list.

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