Uber’s Legal Headaches Continue With Newest Class-Action Lawsuit
Two weeks after Uber’s $100 million settlement with 385,000 drivers in Massachusetts and California, the ride-hailing service is facing fresh litigation.
On Sunday, a class-action lawsuit on behalf of hundreds of thousands of Uber drivers was filed with an Illinois district court—the scope of which is national. Much like the case settled in April, the newest suit alleges that Uber drivers are misclassified as independent contractors and should, as employees, be reimbursed for unpaid overtime and expenses accrued while driving.
The suit also argues that Uber drivers should be paid for the tips that they missed out on as a result of Uber’s business model, stating that ”all gratuities that were earned but stolen by Uber or were lost due to Defendents’ communications and policies.” In the proposed settlement with drivers in Massachusetts and California, Uber said that it would stop informing passengers that tips are included in the trip fare. Unlike Lyft, Uber doesn’t have an option to tip drivers at the end of a ride.
“Uber micromanages drivers’ activities minute by minute which tells us they’re employees and the company can’t avoid employee rights and protections simply by calling drivers, ‘independent contractors,’” said Brian Mahany, attorney for the Plantiff Lorri Trosper and the drivers in the class-action suit.
Uber’s $100 million settlement last month marked a win for the ride hailing company, allowing it to dodge the real issue at the root of these lawsuits: its contractor model. Whether this newest lawsuit will reach a similar conclusion remains to be seen.
“Nearly 90 percent of drivers say the main reason they use Uber is because they love being their own boss. As employees, drivers would have set shifts, earn a fixed hourly wage, and lose the ability to drive with other ridesharing apps—as well as the personal flexibility they most value,” an Uber spokesperson said in an email to FORBES.
Mahany Law launched a national class action as well as state class actions for Uber drivers in Indiana, Illinois and Wisconsin. Unfortunately Uber’s lobbyists were able to convince a number of states to pass legislation making Uber and other ride share drivers independent contractors and thus depriving them of their ability to receive benefits.
A very closely divided U.S. Supreme Court decision all but sealed the fate of drivers. That was back in 2017. Today, the California legislature has secured passage of legislation to protect Uber and Lyft drivers. New cases in Massachusetts show promise as well.
We no longer accept Uber cases but if still publish occasional articles simply that may be of interest to drivers. Simply type in the word “Uber” or “Lyft” in the blog’s search box. You can also read about our original Uber case that started it al.
We love the many Uber drivers we met when in the years that we handled these cases. Hopefully states and the Supreme Court will soon agree that drivers should not have to give up their Constitutional right to have their claims decided by a jury.