Uber Drivers Object to $100M Wage and Hour Settlement

Uber’s proposed settlement of two high-profile wage and hour class action lawsuits last week has drawn opposition from some drivers and other concerned parties as the ride-hailing service seeks to avoid reclassifying contracted drivers as employees.

The wage and hour class action settlement, which still must be approved by a San Francisco federal judge, provides for a $100 million payout to driver contract workers, who could get as little $12 apiece or as much as a few thousand dollars, depending on how many miles they drove.

While the deal puts an end to the two Uber class action lawsuits, it contains a number of caveats and contingencies, such as making $16 million of the payout to drivers dependent on Uber Technologies Inc’s future valuation increasing by 150 percent.

Moreover, the settlement’s non-monetary provisions are set to expire in two years, although Uber may choose to keep them in place after that.

Drivers Object to Wage and Hour Settlement Terms

Many Uber drivers are blasting the terms of this proposed wage and hour settlement announced last week, expressing dissatisfaction for a range of reasons, including that the settlement leaves unresolved the central issue of whether the law requires that drivers be qualified as employees or as contract workers.

One Uber driver, Ruben V., who objects to the settlement, contends that the settlement still fails to resolve a key factor in the litigation, that is whether Uber drivers should be classified as employees or remain as independent contract workers.

“I am a driver for Uber and I do not agree with the settlement for we are misclassified as independent contractors when Uber treats us as employees and controls all of our actions and does not allow us to make our own choices,” Ruben told the judge, asserting that the ride-share company “threaten[s] us if we do not adhere to their instructions.”

“Please object to this joke of a settlement,” added another Uber contract worker, known in court documents as “JUMPY.”

“They control us like puppets with threats of deactivation and tell us what we can and cannot do,” another driver, Daniel V., expressed to the court Thursday. “This is not independent contractor as they claim.”

Uber Settlement Details

Among the non-monetary provisions of the settlement is a new policy governing driver termination, including an appeals process for drivers terminated by Uber, and an agreement that the privately-held company will clarify that drivers do not automatically receive gratuities from their fares and allow them to solicit tips.

The company also agreed to assist with the creation of a drivers’ association to address any contract worker wage and hour claims.

“Seems this settlement is a boon only to Uber, who is getting off easy, and Ms. Riordan, who is getting rich while leaving drivers situation not improved in any meaningful way,” one Uber driver, Gary T. wrote in reference to Shannon Liss-Riordan, the plaintiffs’ attorney for the Uber class action lawsuit.

In an emailed statement, Liss-Riordan called the Uber wage and hour settlement one of the largest of its kind and stated she was positive the non-monetary settlement provisions would better the working environment of Uber drivers nationwide.

“While the court may well have specific feedback or questions on aspects of the settlement, I strongly believe this result was in the best interest of the class and am satisfied with this result,” she wrote. “And the agreement does not endorse Uber’s practice of classifying its drivers as independent contractors; it simply settles one case.  This issue will be addressed another day.”

The Uber Wage and Hour Class Action Lawsuits are O’Connor et al. v. Uber Technologies Inc. et al., Case No. 3:13-cv-03826, and Hakan Y. v. Uber Technologies Inc. et al, Case No. 15-cv-00262, in the U.S. District Court for the Northern District of California.

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