Tipping a California Uber Driver

Early in its inception, the idea of tipping a California Uber driver would have been something that was not appropriate, as Uber customers were told that the Uber fare already included a tip.

Fast forward a few years, and it came to light that the 20 percent tip allegedly charged in the Uber app to go to a California Uber driver did not fully go to the driver, with the majority of the funds actually going to the company.

In late July of this year, Uber reached a settlement with a class of California riders who paid a 20 percent premium on their fare that was allegedly misrepresented as a gratuity that would be given to the drivers.

According to the California Uber driver gratuity charge class action lawsuit originally filed in 2014,

Uber stated on its website, blog and in a promotional email campaign that writers would be charged for the metered amount as well as a 20 percent “gratuity.” Rather than the so-called gratuity going to the California Uber driver, 12 percent of the fee went to Uber, with the remaining eight percent given to the driver.

The plaintiff stated that she would not have paid the gratuity fee if she had known the majority was going to Uber and not directly to the driver.

As a result, Uber agreed to a settlement that would compensate Uber riders with “essentially a full refund of the amount at issue in this suit,” according to court documents.

The proposed Class of individuals who will benefit from the settlement include any customers who received email communication stating that 20 percent charge was gratuity and that took rides with a California Uber driver between April 2012 and March 2013.

Other Concerns Surrounding the California Uber Driver Controversy

In addition to concerns surrounding the payment of the so-called gratuity to California Uber driver that has been raised both by the writers who paid the fee as well as the drivers who anticipated being paid the fee, there are also questions about the potential misclassification of a California Uber driver.

Uber currently classifies its drivers as independent contractors and not as employees of the company. While many drivers appreciated this financial arrangement as well as the ability to be their own boss, a number of Uber drivers took issue with this, claiming that they were misclassified.

Uber drivers who claim that they are treated more like an employee rather than an independent contractor alleged that they do not receive a “living wage” for performing the work that they do for the right service company.

In fact, these Uber drivers allege that the company is trying to get around paying costly obligations under labor law including such things as unemployment insurance, workers’ comp, Social Security and other benefits that are paid to employees.

These Uber drivers also allege that Uber’s misclassification also allows the company to avoid reimbursing employees for work expenses, including health insurance, gas, car maintenance fees and tolls while driving.

So far, Uber has settled two lawsuits, one filed by a California Uber driver group and another filed by a Massachusetts Uber driver group, both alleging that Uber employees were misclassified as independent contractors.

The settlement allowed Uber to keep classifying its drivers as independent contractors, but the company has made policy concessions to improve its business model to further support drivers.

In addition to paying fees to eligible drivers as part of the settlement, Uber agreed to improve communication with drivers regarding drivers’ ratings, revise its practices relating to removing drivers from the service, allow drivers to post signage in their vehicles asking for tips, and will form a drivers Association in California and in Massachusetts to discuss relevant issues.

While a number of Uber drivers were pleased with the outcome of the settlements, others took issue, saying that the settlement did not go far enough to protect Uber drivers and would not compensate drivers for the costs they have incurred.

As a result of his dissatisfaction, the plaintiff in the original class action lawsuit has filed his own lawsuit in objection to the settlement.

The controversy surrounding California Uber drivers will continue as various class action lawsuits continue to proceed within the court system.

Join a Free California Uber Driver Class Action Lawsuit Investigation

If you are an California Uber driver, you may be eligible to join a class action lawsuit investigation into claims they you were misclassified as independent contractors. Find out if you qualify.

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