Uber Settles Class Action in CA, MA for $100M, Fined By PA for $11.4M
Uber isn’t having the best week.
In two separate legal disputes, Uber will pay out a total of $111.4 million. However, the larger of those two payments — $100 million to settle a class-action suit with drivers — is being considered a win by the ride-sharing company.
According to MarketWatch, Uber agreed to pay 385,000 class members $100 million, give drivers proper warning of infractions before deactivating them, explain deactivations, and allow Uber drivers to post signs encouraging tips from riders.
However, at the heart of the class action is whether Uber drivers should be considered independent contractors or employees. The settlement allows Uber to continue classifying drivers as independent contractors, sparing Uber from the complexity of having 385,000 employees in the two states.
The settlement is pending judicial approval, which is expected in June.
In Pennsylvania, the Public Utility Commission (PUC) finalized penalties against Uber for operating within the state without the commission’s approval.
Uber also failed to respond to discovery requests from the commission while the ride-sharing service was operating in the state between February 2014 to August 2014, reports Auto Rental News.
In response, the commission levied a $11.4 million fine against Uber, which was reduced from an earlier, larger fine.
[Image: Top, Jason Tester Guerrilla Futures/Flickr]
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The original fine in Pennsylvania was to be $50 million - a record - but it looks like it was reduced for recent good behavior.
Classic, contemporary Americana. The Fed prints and debases everyone, handing the money to the banksters. Who drive up the "value" of their favorite shares until they are rich. Then the lawyers and apparatchiks swoop in to get their share..... Bloody insulting to realize I descend from the same pool of biogoop as this rabble.
Heh. The system penalising the innovator. This simply translates into slightly costlier Uber rides for everyone, everywhere, forever. But most people are OK with the laws that establish what is an employee vs. what is a free individual able to do whatever he likes with his time, so most people deserve the final outcome.
Hmmnn... so those Uber drivers will get a,little more than half the money probably about 160 bucks a person on average while the law firm rakes in 40 mil or more? I say or more since I'm sure they had additional fees outside of the standard cut. Although I wonder how much the actual costs to the law firm were? I have a buddy whose'so sister works for such a firm andate she maintains,they operate at a loss most of the time so these big rewards plus any additional fees aee more than justified on the lawyers behalf.