In a state known for protecting workers’ rights, the status of California Uber drivers is hanging in the balance.

In April, Uber offered an $84 million settlement in a case that pitted drivers against the company, but U.S. District Judge Edward Chen rejected the settlement offer because it was not “fair, adequate and reasonable.”

Drivers originally asked for more than $800 million, and Chen felt the $84 million fell way too short. In addition, Chen wasn’t sure Uber would keep its promises of supporting the tipping of drivers and becoming a more transparent company.

Harry Campbell, a driver for Uber and Lyft, says that to drivers, it’s not all about the money.

“They want to be employees,” says Campbell.

Since the company started in 2009, Uber drivers have been classified as independent contractors. At the time, few people batted an eye at the status of California Uber drivers. After all, Uber drivers were seen as their own bosses, able to create their own schedules and pick up fares as they wished.

In recent years, perception has changed as Uber drivers have realized what they are losing by being classified as independent contractors.

While Uber has become a $60 billion company, its drivers have been denied reimbursement for gas, car maintenance, tolls and health insurance. All the while, Uber has also avoided paying unemployment insurance, Social Security, workers’ compensation and other benefits.

Determining Status of California Uber Drivers

Whether or not an employee is classified as an independent contractor in California depends upon the degree of control the company has over the employee. An independent contractor is under little control by the company.

Uber claims to have little control over its drivers. California Uber drivers disagree, saying Uber assumes control over the drivers as well as supervision.

Uber controls the purse strings to the extent it even controls tips, stating that when a person obtains an Uber ride, the customer’s credit card charge includes the tip. California Uber  drivers argue that they rarely, if ever, receive these tips.

If the courts decide the status of California Uber drivers is that they are truly employees, Uber will be forced to revamp its entire business model.

Other Uber Lawsuit Outcomes

In an earlier action with Chen presiding, Uber failed when it tried to convince him to dismiss an Uber driver class action suit filed in San Francisco by claiming it was a technology company and not a transportation company.

At that time, Chen said that Uber “would not be a viable business entity without its drivers… Uber’s revenues do not depend on the distribution of its software, but on the generation of rides by its drivers.”

In another case, the California Labor Commissioner determined that Uber owed one driver more than $4,000 in expenses for her time spent as an Uber driver. The Commissioner concluded that the driver was an employee of Uber.

The status of California Uber drivers continues to hang in the balance as both sides go back to the negotiating table.

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

UPDATE: May 2019, the Calif., Mass., Uber driver misclassification class action settlement is now open. Click here to file a claim.