Judge rejects Uber’s settlement with drivers
Uber. Picture: AP Photo/Eric Risberg. - Credit: AP
A $100m (£76m) settlement between ride-sharing app Uber and some of its drivers has been rejected by a US judge.
The deal, agreed by Uber, would have seen the money shared among about 380,000 drivers and stave off a class action lawsuit.
The action is linked to claims that Uber has been treating drivers as independent contractors instead of employees, with the lawsuit contending that they should be compensated for expenses such as petrol.
The 100 million US dollar settlement would have kept the status quo, where drivers are classified as independent contractors.
But district judge Edward Chen declared the deal unfair, a decision that complicates Uber's efforts to remove the legal threat of having its drivers classified as employees.
The distinction would give Uber's drivers more rights and benefits, in turn forcing the company to change its business in ways that would cause its expenses to soar.
Uber expressed its disappointment with the ruling, adding that it will consider its options.
Most Read
- 1 Vicar at heart of bitter church row resigns
- 2 Norfolk festival cancelled amid 'challenging year'
- 3 WATCH: Shock for drivers as car goes the wrong way on A47
- 4 Most desirable places to live in Norfolk according to estate agents
- 5 Gallery of pictures from the Royal Norfolk Show's first day
- 6 Festival-goers 'in the dark' over refunds following cancellation
- 7 Murder jury hears how 'angry' father ran over teenage daughter
- 8 Five-bed farmhouse with attached orchard and glamping site for sale
- 9 Fears access road for new housing will be built on sacred land
- 10 Village pub reopening after £200k refurbishment
The alternatives include taking the case to trial, awaiting rulings in two appeals that would bolster Uber's cause or negotiating a revised settlement with the drivers.
In the UK, Uber is also embroiled in court action, having launched a legal challenge against new Transport for London regulations that require thousands of its drivers to pass an English language test.