Uber, the tap a button, get a ride app that has changed the transportation industry across borders, cultures and languages alike, will pay up to $100 million to the 385,000 drivers in California and Massachusetts over whether they are considered independent contractors or employees. Uber has agreed to pay the plaintiffs $84 million, with a second payment of $16 million if it fact goes public. Judge Edward Chen, is presiding over the case in the Northern California Superior Court, he must still approve the settlement in order for it to take effect.
Shannon Liss-Riordan, is representing the drivers in the suits and stated “No court has decided here whether Uber drivers are employees or independent contractors and that debate will not end here.” The case “stands as a stern warning to companies who play fast and loose with classifying their workforce as independent contractors, who do not receive the benefits of the wage laws and other employee protections.”