Uber Drivers Argue For Class Action Status in Employment Lawsuit

A lawsuit by Uber drivers seeking to be deemed employees could proceed as a California class action lawsuit, depending on the outcome of a recent court hearing in San Francisco.

U.S. District Judge Edward Chen heard arguments in a class action certification hearing on Aug. 13 about whether O’Connor, et al. v. Uber Technologies deserves status as a class action lawsuit representing 160,000 current and past Uber drivers in California, or whether it should be confined to the three drivers who brought the lawsuit against Uber.

At issue is whether the Uber drivers are similar enough to be grouped into one Class, a decision that could considerably raise the stakes for the trial slated to begin this fall.

The Uber lawsuit was filed by Uber drivers in San Francisco federal court. The drivers are hoping to force Uber to recognize them as full employees, rather than independent contractors. As employees, the drivers would be able to be reimbursed by Uber for expenses, such as gas and vehicle maintenance, incurred during the course of their work. In addition, Uber would be forced to pay Social Security, workers’ compensation, and unemployment insurance for its drivers.

The plaintiffs are arguing that Uber exercises a sufficient amount of control over its drivers for them to gain employee status, such as the company’s ability to terminate drivers at-will.

What’s At Stake?

If granted class action status, the California Uber driver lawsuit could include up to 160,000 California Uber drivers. Previous class action lawsuits against similar companies like Lyft and Postmates have not granted the plaintiff-drivers Class certification.

In arguing that the drivers are too different to be considered of the same Class, Uber will point to differences between employees such as working hours, and how some employees also work for other ride-sharing companies. The plaintiffs’ attorney will argue on behalf of the drivers that these drivers all share the most essential aspects of the job.

Class action certification would bring 160,000 drivers into the Uber lawsuit — as opposed to the three now named in the complaint — and compel Uber to reimburse drivers for expenses like gas and mileage. Under discussion were a range of factors, including termination rights, scheduling flexibility and even the drivers’ skill levels.

Judge Chen ultimately opted to consider arguments from both sides and issue a decision later, likely within a few weeks.

The outcome of the trial is expected to have far-reaching consequences across the sharing economy. Uber is credited with popularizing a new class of on-demand services — similar to startups like Postmates, Caviar and numerous others — that rely heavily on independent contractors. Such workers build their own hours, but generally use their own supplies and aren’t entitled to benefits and protections like expense reimbursement, overtime or worker’s compensation.

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