$100 Million to Be Paid To Settle an Uber Class Action Lawsuit

Uber class actions lawsuit seems to be settled by Uber agreeing to pay around hundred million dollars to drivers in the states of Mass. and CA. 385,000 drivers from both states are involved in the two class actions. Rather a big issue for Uber since it had to face a jury trial in June. The main reason for the class action was to determine whether the company has been treating the drivers as freelancers instead of employees. The latter status, as you know, allows for an hourly minimum salary and compensation for expenses.

The settlement still must be approved by a judge. Yet, this is already a victory for Uber since it will not have to consider all those 385,000 people as their employees. The company also wanted to guarantee that no more drivers are going to sue them in the future. Uber has requested that all US drivers agree to the arbitration. However, the court deemed this arbitration clause impossible to reinforce. Other drivers in other states may want to file similar class action lawsuits against Uber taking into consideration the large amount used to settle this one. Moreover, many California and Massachusetts-based Uber drivers are not satisfied with the decision to settle the class action.

At the same time, it is undeniable that Uber drivers will benefit from the conditions set by the settlement. The company will not change its policy of treating the drivers as independent contractors; however, the following changes will be made:

  • $84 million is, for sure, meant for the drivers in the two states
  • Another $16 million will be paid to the drivers if the company’s income grows by 150% as compared to the past year
  • Uber will revise its policy towards deactivation of drivers from the platform since it was once deactivating people without providing warning or ground to do so
  • Uber will help the independent contractors create drivers’ associations in CA and Massachusetts to speak up about their problems
  • The drivers will be allowed to post signs in the vehicles to ask for tips for the service provided

The Uber class action lawsuit agreement is expected to be approved in San Francisco. Uber is the most valuable startup in the Silicon Valley and there has already been lots of buzz around this class action lawsuit. Maybe other independent contractors working for other companies may also get the courage to fight for their rights by following Uber drivers’ example.

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Armen Margarian

Please visit www.NexusLab.com to read by bio and to learn more about our projects.

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