Uber agreed to pay drivers in the US $20 million due to a claim for their labor status
Uber Technologies has agreed to pay $ 20 million to a group of drivers that filed a lawsuit against the company in 2013.
The drivers insisted that they were full-time employees of Uber, and not independent contractors, as the company considers them. So, they should have a minimum salary, medical insurance, and reimbursement of expenses related to work.
In 2016, Uber was already close to settling a class action lawsuit, agreeing to pay $ 100 million. About 385,000 drivers should have received compensation, but San Francisco district judge Edward Chen considered this amount insufficient and rejected the Uber offer.
In May 2018, the US Supreme Court upheld the right of US companies to enter into arbitration agreements with employees and performers prohibiting them from joining together for the class action against an employer.
“We’re pleased to reach a settlement on this matter, and we’ll continue working hard to improve the quality, security, and dignity of independent work,” the company`s spokesman said.
Thanks to this decision, Uber achieved exclusion from the collective action of those drivers with whom the company had arbitration agreements.
“This is not the end of the issue of driver classification,” Liss-Riordan, an attorney representing Uber drivers in the case, said in an email to the Verge.
“We are continuing to pursue many cases against gig economy companies that are misclassifying their workers as independent contractors, in order to save on labor costs and shift the risks and expenses of operating a business to their low wage workers,” added she.
As a result, the number of plaintiffs was reduced to 13,600 people. In other words, the drivers who worked with Uber from August 2009 to February 2019. Each driver can expect compensation in the amount of approximately 37 cents for each mile he has driven while working at Uber, specifies The Verge. The terms of the agreement must also be approved by judge Chen.
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