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$20 million settlement reached in Uber driver lawsuit
SAN FRANCISCO, March 13, 2019 (BSS/AFP) – Uber has agreed to pay $20
million to settle a lawsuit accusing the ride-share service of classifying
drivers as contractors to avoid paying them minimum wage and providing
benefits.
The settlement filed late Monday noted that parties involved in the six-
year-old suit still have a “bona fide” dispute regarding whether any specific
amount of wages are due to drivers.
The proposed deal requires the approval of a federal judge presiding over
the case.
The case filed in August 2013 covers Uber drivers in California and
Massachusetts who provided rides for passengers any time from then to
February 28 of this year who were not bound by an arbitration clause.
An estimated 13,600 drivers were affected. Uber faces a slew of
arbitration claims by drivers not represented by the class-action suit.
“Uber has changed a lot since 2013,” the San Francisco-based company said
in a statement, noting it has added a driver rewards program as well as an
option to let riders tip drivers.
“We’re pleased to reach a settlement on this matter and we’ll continue
working hard to improve the quality, security and dignity of independent
work.”
The settlement also called for Uber to make changes including no longer
deactivating drivers’ accounts for accepting few rides and creating a formal
appeals process for drivers dropped from the service.
The deal does not resolve the big question of whether “gig economy”
workers such as Uber drivers are independent contractors or should be
considered by law to be employees with rights regarding pay, gratuities and
benefits.
The ridesharing behemoth set to launch a stock offering soon is aiming
beyond sharing car rides to becoming the “Amazon of transportation” in a
future where people share instead of owning vehicles.
Under Uber’s plans, commuters could ride an e-scooter to a transit
station, take a train then grab an e-bike, ride share or e-scooter at the
arrival station to complete a journey all done using an Uber smartphone app.
Uber is steering toward a keenly anticipated stock market debut that will
follow an initial public offering of shares by US rival Lyft.
BSS/AFP/HR/1015