As a matter of fact, Uber Technologies, Inc. faces another class action lawsuit. The suit alleges the ride-hail company of violating California labor law. The plaintiffs who filed the lawsuit are the drivers who work for the company. They claim in their complaints that Uber goes on misclassifying its drivers as independent contractors. The consequence of these actions is the wage, as well as hour violations. In addition to that, Uber fails to provide its drivers with appropriate wage statements. Also, plaintiffs state that the company doesn’t pay timely wages due at termination.
Moreover, the company is making efforts to change the nature of financial arrangement that it has with the drivers based on the previous class action lawsuits filed against the ride-hail company, as the lawsuit notes. However, this led to further fraudulent fare pricing scheme. According to the complaint, there is a difference between the company’s drivers’ fares and those, which are provided to customers.
Is Uber misclassifying its drivers as independent contractors?
Here is what the suit states. It was in September 2016 in California, when the company put into practice a new ‘’upfront’’ pricing system. The peculiarity of this system is that it is usually calculating the passenger’s total fare before the driver starts its work. Additionally, the software is also calculating the accurate route for the driver. Then, it is compensating any Uber driver’s fee taking into account ‘’mile and minute’’ configurations.
The complaint notes that drivers and users get different information concerning route configurations. That’s to say, very frequently end users receive longer routes during the fee calculation than the route, which is used for calculating a driver’s payment.
What the transportation company does is collecting upfront rate from users taking into consideration the longer route and time calculations. However, Uber fails to transmit the complete fare to its drivers. The company simply gives drivers the reduced fare amount.
Uber is a ride-hail company based in San Francisco. It has developed a mobile application which is connecting passengers and drivers. It’s worth noting that Uber drivers have their own vehicles, it is very much like a taxi. The company provides its services in about 570 cities throughout the world.