Uber Class Action Lawsuit Filed After Company Denies Drivers Tips

In a growing trend, two more Uber drivers have turned against their employer by filing an Uber class action lawsuit, claiming that the app-based ride-hail company has cheated them out of full pay.

According to plaintiffs Jose Martinez and Jose Ortega, who live in New York State, Uber has denied drivers proper compensation, including tips. The drivers also report that their company forced them to pay for their car expenses, such as gas and repairs.

The two drivers allege in the Uber class action lawsuit that, at the time of their initial hire in 2014, Uber took 25 percent of their total fare. The drivers were allowed 75 percent. However, sometime after they started Uber changed the terms of their compensation and is now demanding that 28 percent of their drivers’ fare goes to the company.

In most Uber class action lawsuits, the main legal question is whether Uber drivers should be classified as employees or as independent contractors. Employees are entitled to certain benefits that independent contractors are not, and so whether or not an Uber class action lawsuit succeeds depends greatly on whether a worker’s classification as employee is accepted. Marc Held, a partner at Held and Hines, agrees.

“Uber drivers are employees of this billion dollar company, not independent contractors and deserve the same rights, benefits and compensation as permitted under New York State Law,” said Held. “These are hard working men and women who are being exploited. Uber needs to recognize this and compensate them accordingly.”

However, Uber disagrees. According to an Uber spokesperson, “With Uber there is no need to tip. Once you arrive at your destination, your fare is automatically charged to your credit card on file, making for a cashless and seamless experience for riders and drivers.”

Plaintiffs involved in Uber class action lawsuits allege that Uber knowingly misclassifies its workers as independent contractors rather than official employees with full benefits. According to these lawsuits, Uber does this purposefully in order to avoid many extraneous costs associated with having employees. The kinds of costs the company wishes to avoid include unemployment insurance, workers compensation, Social Security, and other benefits.

The Uber company, founded in 2009 and recently valued at $50 billion, argues that its main business is providing a platform for drivers to offer their own services as Uber independent contractors. The company continues to argue that their drivers are independent contractors rather than employees.

Many dissatisfied Uber drivers have either filed individual Uber lawsuits or joined Uber class action lawsuits to gain some kind of financial compensation for their monetary losses, as well as  fight for their right to be recognized as full employees of the company in the future.

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now