Uber drivers to receive $20m pay in legal battle settlement
Ride-hailing firm, Uber has agreed to pay $20 million to settle a lawsuit brought by drivers nearly six years ago.
TheNewsGuru (TNG) reports the settlement is coming after the drivers filed new settlement agreement in a federal court in San Francisco late on Monday night.
Uber drivers had argued in the lawsuit that they are employees, not independent contractors, as Uber has classified them, and therefore entitled to certain wage protections and reimbursement for their expenses.
The settlement amount is one-fifth of the settlement offer Uber proposed in 2016 to resolve the case, valued at up to $100 million, which US District Judge Edward Chen at the time rejected as inadequate.
A California Supreme Court ruling last year made it much more difficult for companies like Uber to argue that their drivers are independent contractors, a decision that poses a threat to Uber’s business model.
In a statement, an Uber spokesman said “Uber has changed a lot since 2013,” and highlighted new programs and technology improvements to help 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 spokesman said.
The settlement covers drivers in California and Massachusetts who drove for Uber from August 2009 through February of this year, according to the filing.