Breaking News

Uber Settles Driver Misclassification Lawsuit for $100 Million
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

la-fi-tn-uber-panic-button-20150213

Photo courtesy of L.A. Times.

Summary: Uber has finally settled the misclassification lawsuit filed by its drivers. 

In Uber’s latest legal news, the often-sued company now has to pony up $100 million, but they won a bigger victory in the end. This week, they settled the high-profile class-action lawsuit against them, which alleged they misclassified their drivers, Reuters reports. With the settlement, Uber agreed to pay the amount, but they are allowed to keep their current business model with a few changes.

  
What
Where


The lawsuit was brought on by powerhouse workers’ rights attorney, Shannon Liss-Riordan. It claimed that drivers were actually employees and thus deserved reimbursements along with benefits such as health insurance. With the settlement, drivers will remain classified as independent contractors. However, Uber has to change some practices like how they terminate drivers. People have long complained that the deactivation process is arbitrary, and Uber now must give drivers reasons for removing them from the ride-sharing business.

This case has been closely watched by those in Silicone Valley. Not only has Uber innovated the sharing economy, but other businesses have emulated their practices, basing their services on the backs of independent contractors.

The class action’s trial had been scheduled for June in San Francisco, but it is no longer on the court’s schedule. Liss-Riordan said in a statement that nothing about the settlement meant that Uber drivers couldn’t be deemed employees in the future. Also, before the settlement is finalized, it will have to approved by Judge Edward Chen of San Francisco.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Out of the settlement, only $84 million will go to the drivers. However, Uber could end up paying $16 million more if their valuation grows by 150 percent one year after it’s initial public offering.

During its December 2015 funding round, the company was estimated to be worth $62.5 billion. Uber founder Travis Kalanick said 450,000 U.S. drivers a month use the service.



The settlement is similar to the one reached by rival company, Lyft. In January, we reported that they settled their misclassification class action lawsuit for $12.25 million, a sum slightly less extreme than their flashier counterpart.

Source: Reuters



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Business Litigation Attorney

USA-CA-Santa Monica

Santa Monica office of our client seeks business litigation attorney with 1-3 years of experience. T...

Apply Now

Intellectual Property Litigation / Enforcement Associate Attorney

USA-CA-San Francisco

San Francisco office of our client seeks intellectual property litigation / enforcement associate at...

Apply Now

Corporate Attorney

USA-CA-Menlo Park

Menlo Park office of sophisticated boutique firm is seeking a corporate attorney with experience in ...

Apply Now

Mid-level Computer Science Patent Attorney

USA-CA-San Francisco

San Francisco office of our client seeks mid-level patent attorney with 3-5 years of intellectual pr...

Apply Now

RELEVANT JOBS

Associate Attorney

USA-OK-Oklahoma City

Hobbs Straus Dean & Walker, LLP, a national law firm with offices in Washington D.C., Portland, Okla...

Apply now

Oil and Gas Attorney – Houston or The Woodlands

USA-TX-Houston

Position requirements: JD with a strong academic record Must be licensed to practice law in th...

Apply now

PARALEGAL

USA-AZ-Tucson

Paralegal preferably with experience in Workers\' Compensation and other Civil Litigation.  Job...

Apply now

Litigation Secretary

USA-CA-Los Angeles

$25 - $30 an hour Part-time Downtown Los Angeles law firm with offices in San Diego and West P...

Apply now

SEARCH IN ARCHIVE

To Top