Uber Gets Red Light in Bid to Settle Drivers' Wage Claim
In its attempt to settle wage claims affecting more than 1 million of its drivers, Uber just slid off the road. At a hearing on Friday, a Los Angeles judge tentatively rejected a $7.75 million settlement that would have resolved claims that its drivers have been misclassified under California law as independent contractors, rather than employees. At a hearing on Friday, lawyers for both Uber and the plaintiffs in the case vehemently fought back against Los Angeles Superior Court Judge Maren Nelson's concerns that the deal might have been the result of collusion.
June 30, 2017 at 05:13 PM
5 minute read
In its attempt to settle wage claims affecting more than 1 million of its drivers, Uber just ran into a red light.
At a hearing on Friday, a Los Angeles judge tentatively rejected a $7.75 million settlement that would have resolved claims that its drivers have been misclassified under California law as independent contractors, rather than employees. At a hearing on Friday, lawyers for both Uber and the plaintiffs in the case vehemently fought back against Los Angeles Superior Court Judge Maren Nelson's concerns that the deal might have been the result of collusion.
In court, Nelson focused on the fact that both sides failed to produce a range that estimated generally how much the claims, brought under California's Private Attorneys General Act of 2004, were actually worth. PAGA allows private parties to pursue labor violations under California law.
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