Owen H. Laird, Esq.
As we have previously discussed, Uber, the multi-billion dollar company behind the eponymous smartphone taxi app, is in a long-term dispute with its drivers over benefits and pay. This dispute stems from Uber’s classification of its drivers as independent contractors rather than employees. Last week, a federal court in California threw out a proposed agreement between Uber and its drivers that would have allowed Uber to continue classifying them as independent contractors.
Drivers filed class action lawsuits in Massachusetts and California challenging Uber’s classification. Earlier this year, Uber reached agreement on the settlement with the two groups of drivers. Under the terms of the settlement, Uber could continue classifying its drivers as independent contractors, but was required to pay its Massachusetts and California drivers a total of $100 million, allow them to accept tips, and permit them to investigate forming driver collectives.