Uber Settles Driver Classification Lawsuit for $20 Million

Discussion in 'HardForum Tech News' started by cageymaru, Mar 13, 2019.

  1. cageymaru

    cageymaru [H]ard|News

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    Uber has agreed to pay $20 million to settle a lawsuit that stemmed from its classification of its drivers as independent contractors. By classifying its drivers as independent contractors, the ride-hailing service was able to avoid paying expenses and benefits associated with traditional employment. In 2016, Uber had agreed to pay $100 million to settle the case with 385,000 drivers in California and Massachusetts, but another judge threw that ruling out as the payout wasn't sufficient given the original class size. An appeals court ruled in favor of Uber and reduced the amount of affected drivers to 13,600. It determined that "Uber's mandatory arbitration agreements -- which obligate workers to settle their claims with the company one-on-one -- were largely valid and enforceable." The 13,600 drivers who qualified for the settlement either worked for Uber before the mandatory arbitration agreement was added or had opted to not agree to arbitration. Drivers will receive about $.37 per mile driven.

    Uber said it had worked to make "the driver experience even better through improvements like in-app tipping, a redesigned driver app, and new rewards programs," according to an emailed statement from spokesman Matt Kallman. "We'll continue working hard to improve the quality, security and dignity of independent work."
     
  2. jeffj7

    jeffj7 [H]Lite

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    mandatory arbitration agreements= sign it or no jobs for you
     
  3. Cantroy

    Cantroy Lurker

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    Just another sign that the "company" is likely not worth working for...
     
  4. Rahh

    Rahh [H]ard|Gawd

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    "in-app tipping". Wasn't one of the perks of Uber was you don't have to worry about tipping since it was taken care of already in their cost for the driver?
     
  5. oldmanbal

    oldmanbal [H]ard|Gawd

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    The issue is that Uber advertises this as a little work on the side, no big deal. However, it is a real job that comes with responsibilities as an employer and Uber has time and time again tried to sidestep any responsibilities that employers have in supporting their employees. This is why Uber puts cab companies out of business. The 'drivers' are paying for all the expenses and getting the least of the profits. Uber is just running an app and raking it in. Eventually a service will come along like epic games store that just gives the drivers most of their cut, and uber will be in a tough position. Until then, if you're an Uber driver, go pound sand.
     
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  6. Lakados

    Lakados [H]ard|Gawd

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    The problem is any company that did that would not find themselves with the capital to go head to head with either the Cab companies or UBER/LIFT as they would actually be paying their employees..

    Uber pays $0.37 per mile driven, AAA estimates that the cost to properly maintain and fuel a vehicle is $0.424 per mile based on an average of 15,000 miles per year (in a small sedan), the cost goes up beyond that as maintenance intensifies.

    Edit: I originally said the AAA estimate was $.608 per mile but that was for a larger vehicles, Minivans, Large Sedans, SUV's...
     
  7. sfsuphysics

    sfsuphysics I don't get it

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    So drive 10k miles per year and you put $4240 to maintain your car? Seems a bit excessive
     
  8. Lakados

    Lakados [H]ard|Gawd

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  9. Tsumi

    Tsumi [H]ardForum Junkie

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    Their calculation includes purchase price and subsequent devaluation, fuel costs, insurance, and so on.
     
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