Uber California Labor Lawsuit Could Still Go On

Sacramento, CAA California labor lawsuit filed by drivers for Uber - a ride-sharing service - could continue on, even though a $100 million settlement has been proposed to end the labor lawsuit. Drivers who filed the lawsuit are reportedly not pleased that one of the main issues in the California labor claim - that of them being employees and not independent contractors - has not been dealt with.

The lawsuit was filed by drivers for Uber, who alleged they should have been classed as employees, not as independent contractors. The line is a significant one: independent contractors have more discretion in carrying out their job duties, but they also have to pay their own maintenance fees and are not given employee benefits. Employees have less discretion over their job, but they have more protections.

Drivers say Uber controlled their jobs as though they were employees, but classified them as independent contractors. As such, they were not paid overtime nor given other protections and were forced to pay for gas, fees, and maintenance related to their vehicles.

In April 2016, a settlement worth $100 million was announced. But that settlement did not get Uber drivers classified as employees. Instead, they would stay as independent contractors - with no rights to minimum wage or overtime - and Uber would simply change its termination policy.

Some drivers are not happy with that proposed settlement. The Los Angeles Times (5/17/16) reports that under the settlement, some drivers would receive a one-time payment of between $6,000 and $8,000. Brandon Marshall, who says he used to make $1,000 in 20 hours driving for Uber, says that thanks to Uber lowering its rates, he now makes less than minimum wage. An attorney for the drivers said she obtained the best settlement possible, given the uncertainty of going to trial.

In a similar lawsuit, a settlement between Lyft and its drivers was recently rejected by the judge. In that case, the federal judge found that the initial proposed settlement of $12.25 million was too low. In May, Lyft offered to pay $27 million to settle the lawsuit and said it would change its terms of service to make the terms of driver termination more clear.

Uber also faces a lawsuit in New York City.

The California lawsuit is O’Connor v. Uber, case number 3:13-cv-03826, in the US District Court in the Northern District of California.