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Briefing

Uber to pay US$20 million to settle driver-classification lawsuit

A class-action case dating back to 2013 has finally been settled; the suit claimed Uber classified drivers as contractors to avoid paying for benefits and minimum wage. For its part, Uber told Bloomberg it is working to improve drivers’ experience “through in-app tipping, a redesigned driver app and new rewards programs.” Drivers who worked for Uber between Aug. 16, 2009 and Feb. 28, 2019 in California or Massachusetts not bound by Uber’s arbitration clause are eligible for the money. (Bloomberg)

Briefing

Uber to pay US$20 million to settle driver-classification lawsuit

By Jessica Galang
Mar 12, 2019
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A class-action case dating back to 2013 has finally been settled; the suit claimed Uber classified drivers as contractors to avoid paying for benefits and minimum wage. For its part, Uber told Bloomberg it is working to improve drivers’ experience “through in-app tipping, a redesigned driver app and new rewards programs.” Drivers who worked for Uber between Aug. 16, 2009 and Feb. 28, 2019 in California or Massachusetts not bound by Uber’s arbitration clause are eligible for the money. (Bloomberg)

Talking point: Uber faces similar challenges in Canada, as well. The company has been tackling a Canadian class-action lawsuit that also says Uber drivers should be considered employees. Uber also in the midst of disputing Canada Revenue Agency’s reassessment that it needs to pay a sales tax on rides between 2012 to 2013. Uber said it shouldn’t be responsible for sales tax because its drivers are not employees. It’s not clear how the settlement in the U.S. will affect its cases in Canada.

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