# Uber Settles Thousands of Driver Misclassification Claims Before IPO



## KevinH (Jul 13, 2014)

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https://www.law.com/therecorder/201...breakingnews&utm_content=20190509&utm_term=ca
 
*Uber is setting aside at least $146 million to pay drivers over misclassification concerns. The ride-hailing company announced it reached agreements with thousands of drivers the day before its planned IPO.*

By *Caroline Spiezio* | May 09, 2019 at 12:08 PM | Originally published on *Corporate Counsel*









_Over 100 protesters demanding fair wages and fair labor practices outside the San Francisco Uber headquarters briefly shut down traffic on May 8. (Photo: Jason Doiy/ALM) _
The day before its planned initial public offering, ride-hailing giant Uber Technologies Inc. has announced it settled with thousands of drivers over claims it misclassified them as independent contractors.

Uber disclosed in a U.S. Securities and Exchange Commission filing Thursday that it reached agreements to "resolve the classification claims of a large majority" of 60,000 U.S. drivers who filed, or expressed intention to file, arbitration demands. The San Francisco-based company set aside $146 million to $170 million for settlement payouts.

The question of drivers' classification, independent contractor versus employee, has long plagued Uber and its gig economy peers. On Wednesday, hundreds of Uber and Lyft Inc. drivers went on strike, demanding more pay, benefits, which independent contractors don't receive, and better working conditions. Uber reserved $132 million for misclassification settlements in December and listed classification suits as a risk factor in its earlier S-1 filing.

Uber has maintained its drivers are independent contractors because they drive their own cars and choose their hours. But the company has faced a series of legal challenges over its worker classification, including rulings in France and Philadelphia.

Classification changes also could come soon to Uber's home state, California. In April 2018, the California Supreme Court adopted the worker-friendly ABC test to determine contractor status in its _Dynamex Operations West v. Superior Court _ruling, requiring companies show that workers are "free from control" and perform "work that is outside the usual course" of the business. The U.S. Court of Appeals for the Ninth Circuit found last week that the Dynamex ruling applied retroactively.

Uber's Thursday filing listed Dynamex as an example of a "recent judicial decision" that "could require classification of Drivers as employees." Its "business would be adversely affected if Drivers were classified as employees instead of independent contractors," according to Uber's S-1 filing.

Such a reclassification could require Uber to pay "significant additional expenses," including minimum wage and overtime pay, employee benefits, taxes and "penalties." If the company takes action against striking workers found to be misclassified, it also could face complications under the National Labor Relations Act.
Uber and Shannon Liss-Riordan, a partner at Lichten & Liss-Riordan, who has represented Uber drivers in litigation over classification, did not immediately respond to request for comment. Keller Lenkner managing partner Travis Lenkner, who has represented drivers in misclassification suits against Uber, declined to comment.
*Read More: *
Uber, Lyft Driver Strike Could Set Off Misclassification Minefield
9th Circuit: 'Dynamex' Worker Classification Test Applies Retroactively


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## The Entomologist (Sep 23, 2018)

Lol, how is 170 million from 600 million they could have lost a good settlement? Shannon sells out once again for a huge cut of a shitty settlement.

And now that you know Uber is wiling to bend over backwards in a misclassification lawsuit, start filing your lawsuits boys this time you know they can't fight it and go for at least 70% of the cost.


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## KevinH (Jul 13, 2014)

The Entomologist said:


> Lol, how is 170 million from 600 million they could have lost a good settlement? Shannon sells out once again for a huge cut of a shitty settlement.
> 
> And now that you know Uber is wiling to bend over backwards in a misclassification lawsuit, start filing your lawsuits boys this time you know they can't fight it and go for at least 70% of the cost.


I am frustrated every time one of these settlements come up. There is never a resolution of the problem like changing business practices or to stop repeating the some abuses.Yes, the attorneys come out ahead. Regulators and officials stand aside and let the litigators manage the labor standards.

BTW, the $600 was the estimate for the administration costs of going through each arbitration process, it did not estimate what the total driver reimbursement would be. Certainly Uber comes out ahead by settling ahead of arbitration, but one journalist said it would take almost decades to process 6000 cases.


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## EM1 (Apr 28, 2019)

Hi, I'm a PT Uber driver in the LA-OC-San Diego area (I Uber in all 3 counties b/c my regular job and family takes me there). I'm encountering troubling patterns from Uber including:

1) The App GPS is consistently providing a longer route. Nothing to do with traffic as majority of my driving is later at night. I show the rider what the App is indicating so they know its the App, not me. In one case, I was driving pax to his home in Hollywood. 4 blks from his home, the App suddenly changed and said to do a U-turn, and go back 4 blks. Completely wrong and both me and pax were wondering wtf. This is happening on a very frequent basis, seems to be more prevalent in the L.A. area than OC or San Diego. 

2) Rider cancellations. If a rider does cancel when I'm at the pickup location, about 1/2 the time Uber does not pay me the $4 cancellation fee. At other times, I'm not even at the pickup location, the rider cancels, and Uber does pay the $4 cancellation fee (its very rare they pay me on those occasions but it has happened). 

3) Delayed Tips. I'm receiving a lot of delayed tips. Sometimes up to 10 days after a trip. Its happening quite a bit. I suppose its possible some pax tip the next day or so, but if Uber is holding all this tip money (nationwide or globally) for several days in an interest-bearing account instead of paying drivers, I'm sure it adds up nicely for them. Again, a pattern here. 

4) I had a surge fare, picked up rider, dropped him off. Followed the GPS from the App, completely normal ride. The ride/fare disappeared from my trips/transactions. As if it had never occurred. I contacted Uber, still had the drivers tel# and name (I had called him to confirm pickup location). Uber at first acknowledged they had an App problem and that the trip occurred, then later, they denied the trip occurred and refused to investigate or pay me. All of this communication was in writing through the App messages. 

5) Recently, I received a text from Uber congratulating/welcoming me to Uber as a new driver (I've been a driver for over 3 years now). I called, and their Phillipine-based customer service was very difficult to understand, they kept providing me different answers, then they told me a new Toyota vehicle had been registered to my driver account. I've never owned, nor driven a Toyota en my life. I kept receiving welcome notifications as if I were a new driver, and when I called, they kept telling me a Toyota had been added to my driver account. Very difficult to understand the reps, their grasp of English conversation was not good, and they kept providing changing, inaccurate information. 

6) Inadequate support in their call center. Seems their reps are not quite fluent in English, purposefully vague & misleading when trying to resolve an issue. Often condescending. They've hung up on me a few times even though I was professional and polite. Something is amiss with their contact center reps. 

7) Quest. There have been a few times where the $X/ride quest bonus was not paid. Despite fulfilling all of the quest requirements (date/time/location). Its not often, but it has happened and seems to be happening more frequently lately since now in 2019 they have gone to the $X/ride quest bonus vs. X% pricing quest bonus. 

8) Recent decrease in $/mile and increase in $/minute. While traffic can jam up and its great to be compensated for the time, the decrease in $/mile has a substantial impact on earnings. In addition, gas in southern California has just increased almost 25% (about $4.30/gallon for Premium, and rising).


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## RabbleRouser (Apr 30, 2019)

Uber Drivers are the favorite Chumps (new classification) of
Uber corporate, the public, lawyers and regulators.

They all make money off the working poor drivers

$170ML to uber corporate is peanuts ?
They spend more on toilet ? paper & Bic pens ?
for their global offices


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