Calif. Uber drivers get class-action status in employment suit
A lawsuit that threatens Uber’s business model gained significant momentum on Tuesday when a federal judge granted it class-action status.
U.S. District Judge Edwin Chen ruled that California drivers seeking to be reclassified as employees could proceed as a class-action case, with some limits.
Employee status could require Uber to pay unemployment, workers’ compensation, minimum wage and overtime, as well as give the drivers the right to unionize.
“The mountain of evidence we submitted to the court — including the declarations of over 400 drivers from across California — demonstrates that two plaintiffs do not and cannot represent the interests of the thousands of other drivers who value the complete flexibility and autonomy they enjoy as independent contractors,” Ted Boutrous, Uber’s chief outside counsel, said in a statement.
“It will allow thousands of Uber drivers to participate in this case to challenge their misclassification as independent contractors, as well as to attempt to recover the tips that Uber advertised to customers are included in the fare, but are not in fact distributed to drivers,” she said in a statement.
Uber Technologies want reimbursement for tips and expenses, such as gas, maintenance and wear and tear.
While the order didn’t grant class-action status to the expenses portion of the lawsuit “at this time,” Chen left the door open for the plaintiffs to make another stab at requesting it, something Liss-Riordan said she will do.
Uber’s star rating system, its ability to terminate drivers without cause and its “unilateral” ability to set rates were among the specifics that Chen cited.
The Uber case is the furthest along of a rash of lawsuits against on-demand companies such as Postmates, Instacart, Caviar and Handy in which “gig workers” argue that they deserve the protections and rights of employees.
On-demand cleaning company Homejoy, which closed its doors this summer, said the workers’ lawsuits contributed to its decision to shut down.