So uber is gonna be paying the sum of $20 million to settle californian drivers for the calling them independent contractors and not employees. This is coming amidst it preparation for an IPO, the company was sued after it refered to it employees as independent contractors and not employees to avoid paying a minimum wage, overtime, sick leave and health insurance.
The cases turned on whether drivers were essentially forced by their contracts to resolve any conflicts one-on-one, behind the closed doors of private arbitration and forbidden to join forces in class-action lawsuits. Drivers argued Uber made it onerous for them to opt-out of the arbitration provisions. In response to the allegation uber said “ the driver experience even better through improvements like in-app tipping, a redesigned driver app, and new rewards programs,” the number of drivers meant for the initial settlement was 385,000 but an appeals court ruling upholding Uber’s arbitration agreements as largely valid and enforceable, which ultimately reduced the class to as low as 13,600 drivers who will partake in the settlement.
The settlement requires the approval of a judge before any actions could be taken. Shannon Liss-Riordan, is representing drivers in the San Francisco lawsuits and settled with the ride-share company. Even before the appeals court ruling, prospects for the suits against Uber were dealt a blow by a U.S Supreme Court decision last year, which bolstered the power of employers to force workers to use individual arbitration instead of class-action lawsuits.
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