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San Francisco U.S. District Judge Edward Chen has denied Uber’s motion to dismiss a class action lawsuit over its tip reimbursement policy, paving the way for company drivers to pursue their claims against the company.
The judge also ruled that drivers in other states can join the class action lawsuit since Uber’s licensing agreement includes a clause specifying that all disputes will be settled under California law.
Uber is a San Francisco-based technology startup. Its mobile application connects passengers with drivers of vehicles for hire. Uber advertises to customers that gratuity is included in the cost of its car service. However, Uber drivers allegedly do not receive the total proceeds of any gratuity and receive only a portion of such gratuity, according to the class action lawsuit.
“Thus, drivers do not receive the tips that are customary in the car service industry and that they would otherwise receive were it not for Uber’s communication to customers that they do not need to tip,” plaintiffs Douglass O’Connor and Thomas Colopy say in their lawsuit. The plaintiffs are also alleging that Uber refuses to reimburse them for fuel and other automobile expenses. It is customary in the car service industry for customers to leave approximately a 20% gratuity for drivers.
The judge, in his ruling, said that Uber exercises enough control over the day-to-day operations of its drivers to show the existence of an employment relationship. In its motion to dismiss, Uber claimed that its drivers are independent contractors rather than employees.
As a consolation, the judge ruled that Uber President Travis Kalanick and Vice President Ryan Graves are not necessarily culpable for all of the company’s labor practices.
The plaintiffs are seeking restitution for all charged gratuities which were not remitted to the drivers; award damages for defendants’ interference with drivers’ receiving tips from customers; award reimbursement that the drivers who were misclassified as independent contractors were required to bear; award pre- and post-judgment interest; award reasonable attorneys’ fees, costs, and expenses; and award any other relief to which the plaintiffs may be entitled.
This Uber Driver Class Action Lawsuit is Douglas O’Connor and Thomas Colopy, et al. v. Uber Technologies Inc., et al., U.S. District Court, Northern District of California (San Francisco Division).
Free Legal Help for Tipped Employees
If you were employed as a chauffeur or private driver for a car service company within the past four years, or were employed by any company that tacks on a mandatory customer/service charge, and received all or part of such charges as part of your pay, you may qualify to join a free class action lawsuit investigation. Learn more at the Service Charge, Wage & Hour Class Action Lawsuit Investigation.
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
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