Uber Fails to Get California Employee Misclassification Lawsuit Tossed

The ride-hailing giant Uber recently asked a judge to throw out a California employee misclassification lawsuit that had been leveled against the company, but a federal judge ruled that the lawsuit can continue.

Filed by driver Thomas C. as a class action lawsuit, the allegations against Uber include misclassifying Thomas as an independent contractor instead of an employee, resulting in the claimant being denied proper wages, overtime pay, and reimbursement, along with other benefits an employee could expect. The plaintiff filed the lawsuit as a proposed class action, meaning that he believes other Uber drivers to be in a similar situation.

U.S. District Judge Edward M. Chen of California denied Uber’s motion to dismiss the suit along with most of Uber’s other motions.

The plaintiff argued that Uber’s classification of its drivers as independent contractors “exacted an irreparable public harm on the state of California by diminishing labor standards, depriving the state of tax revenue, costing the state and taxpayers money in public assistance that is needed for Uber drivers who cannot meet their basic necessities.” The judge rejected this portion of the plaintiff’s argument.

“Plaintiff argues that pre-certification injunctive relief is appropriate because ‘plaintiff is seeking public—not classwide—injunctive relief.’ This argument is not convincing,” said Judge Chen.

Most of the remaining claims were kept, in part due to Assembly Bill 5, a recent California employee misclassification law that takes effect Jan. 1. Assembly Bill 5 imposes a stricter, three-pronged test to determine if companies should classify workers as independent contractors or employees.

If each of these three factors is met by a worker, the worker should be considered an independent contractor under the recent California ruling, according to TheBalance.com. The requirements are as follows:

• The worker is free from the control/direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
• The worker performs work that is outside the usual course of the hiring entity’s business.
• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

Judge Chen determined that the allegations contained in the California employee misclassification lawsuit met the threshold to make a claim.

Can I File a California Employee Misclassification Lawsuit?

If you work in California and believe you have been misclassified, denying you proper wages, overtime, or other benefits, you may be able to file a lawsuit and pursue compensation. Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork 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.

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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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