U.S. Judge Rejects Uber's Class Action Settlement Offer

[HardOCP News]

More bad news for Uber. A U.S. District Court Judge in San Francisco has ruled that the settlement offer by Uber was not fair or adequate for its drivers. The company says that it is "disappointed" with the ruling and is looking at its options.

Some drivers had objected to terms of the settlement valued at up to $100 million, which would have affected roughly 385,000 current and former drivers in California and Massachusetts. The proposed settlement would have kept drivers classified as independent contractors. Several drivers who were part of the class filed objections with the court, particularly because the proposed amount was well below the total potential damages in the case of roughly $850 million.

 

[Cmdrmonkey]

Uber is basically a big 1099 independent contractor misclassification scam. If the IRS functioned the way it should, they would force them to reclassify them as W2s. Of course, Uber would no longer be able to compete with taxi companies if that were the case. The only reason they are competitive is due to tax fraud. The drivers take all the risks and pay the taxes and overhead while Uber skims off the top. When all is said and done, an uber driver probably makes less than a low level Walmart employee.

 

[illram]

Uber is basically a big 1099 independent contractor misclassification scam. If the IRS functioned the way it should, they would force them to reclassify them as W2s. Of course, Uber would no longer be able to compete with Taxi companies if that were the case. The only reason they are competitive is due to tax fraud. The drivers take all the risks and pay the taxes and overhead while Uber skims off the top. When all is said and done, and uber driver probably makes less than a low level Walmart employee.

Pretty much. That's "disruption" to these folks.

 

[Staples]

Uber is basically a big 1099 independent contractor misclassification scam. If the IRS functioned the way it should, they would force them to reclassify them as W2s. Of course, Uber would no longer be able to compete with taxi companies if that were the case. The only reason they are competitive is due to tax fraud. The drivers take all the risks and pay the taxes and overhead while Uber skims off the top. When all is said and done, an uber driver probably makes less than a low level Walmart employee.

It is amazing how so many people can't do the math to figure out how much their net profit would be working as a driver.