Uber Lawsuit Gets Class-Action Status

San Francisco, CAA California labor lawsuit filed by Uber drivers has been granted class-action status. The California labor lawsuit alleged Uber violated various employment laws by classifying the drivers as independent contractors instead of as employees and cheating the drivers out of tips. In making his ruling, U.S. District Judge Edward M. Chen rejected Uber’s arguments that the drivers were too different to warrant class-action certification.

The lawsuit was filed in 2013, by an Uber driver who alleged he and other Uber drivers were misclassified as independent contractors and denied tips. The lawsuit also alleged some drivers were improperly forced to pay expenses related to their work for Uber. In making his ruling, Judge Chen took issue with Uber’s arguments against class-action status, noting some contradictions.

“On one hand, Uber argues that it has properly classified every single driver as an independent contractor; on the other, Uber argues that individual issues with respect to each driver’s ‘unique’ relationship with Uber so predominate that this court - unlike, apparently, Uber itself - cannot make a classwide determination of its drivers’ proper job classification.”

Some drivers were excluded from the class, which covers the tip claims of Uber drivers who signed up with the company under individual names since August 16, 2009. Drivers who signed an arbitration agreement are not part of the class. Further, Judge Chen didn’t certify class status regarding claims about drivers paying their own expenses.

But Judge Chen did find that although some drivers may have different claims regarding Uber, the claims all revolved around whether or not Uber drivers are independent contractors or employees, a question that could have implications beyond Uber itself. Lyft, another ride-sharing company, and other similar companies founded in the sharing economy face lawsuits alleging the improper classification of workers.

Plaintiffs in the lawsuit claimed victory on the issue of class-action status, although Uber was reportedly pleased that the judge limited members of the class. The company still plans to appeal the class certification, arguing that 400 of its drivers support the flexibility and independence that come with being an independent contractor as opposed to an employee.

The lawsuit is O’Connor et al. v. Uber Technologies Inc. et al, case number 3:13-cv-03826, in the U.S. District Court in the Northern District of California.