Uber had agreed to pay $100 million to drivers in California and Massachusetts who sued over their status as contractors, rather than employees.
Keeping drivers as contractors, not eligible for benefits or other protections for full-time workers, has been instrumental in Uber’s astronomical growth and business model. Settling class-action lawsuits over the issue for $100 million allowed Uber to move forward with its business model intact.
A judge on Thursday blocked an $84 million settlement agreement between Uber Technologies Inc. and its drivers. U.S. District Judge Judge Edward Chen found the settlement amount inadequate, but not necessarily because of the core agreement that would net most drivers $24 or less. Instead, the judge found a part of the lawsuit that, under California labor law, allows workers to recover fines that could be assessed by the state, settled for too little.
Keywords
California operators driver pay employee vs independent contractor lawsuits legal issues Massachusetts operators regulatory enforcement TNCs Uber wage lawsuits
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