Uber settles major lawsuit over driver employment status

[Eugene]

Source: Reuters

Ride service Uber has agreed to pay up to $100 million to settle a class action lawsuit over whether its California drivers are employees or independent contractors, resolving a major challenge to its business model.

The settlement maintains Uber drivers as independent contractors, even though the lawsuit had alleged that Uber drivers are employees entitled to reimbursement of expenses.

Out of the $100 million proposed payment, $84 million is guaranteed to drivers and $16 million is contingent on an increase in Uber's value.

Uber announced some changes in its business practices, including the institution of a policy for deactivation of drivers, chief executive Travis Kalanick said in a blog post about the settlement.

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Read more: http://www.reuters.com/article/us-uber-tech-drivers-settlement-idUSKCN0XJ07H

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Technology | Thu Apr 21, 2016 10:55pm EDT
SAN FRANCISCO | BY DAN LEVINE

[msongs]

1. uber drivers are like th day laborers hanging out at Home Depot in the morning nt

[GummyBearz]

2. That seems like a really shitty thing to say against both parties

Day laborers are what in your opinion? Bottom feeders? Shit, sometimes you need to get work, and if hammering nails for a day lets you buy lunch then what is your issue?

I have used uber many times. If someone wants to take me to some place where parking is scarce? Great. They want to take me home after drinking? Great.

WTF is your problem with any of that?

[Travis_0004]

3. They are both independent contractors.

Also, it must be a regional thing. Ive never seen a day laborer outside of a home depot.

[Merlot]

4. If you've never seen a day laborer outside HD you've never been to So Cal

They also are outside of the U-haul rental lot.

[Merlot]

5. I don't think they are implying day laborers are bottom feeders

There are some similarities between uber drivers and day laborers. Both are dependent on piecemeal work, and have an insecure income. Neither get any benefits. Both have to use their own equipment.

At least uber drivers don't have to worry about collecting payment. I've heard stories of people promising day laborers work and then finding reasons not to pay them knowing full well they have no recourse.