By on April 22, 2016

Uber ride, Image: Jason Tester Guerrilla Futures/Flickr

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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5 Comments on “Uber Settles Class Action in CA, MA for $100M, Fined By PA for $11.4M...”


  • avatar
    SCE to AUX

    The original fine in Pennsylvania was to be $50 million – a record – but it looks like it was reduced for recent good behavior.

  • avatar
    stuki

    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.

  • avatar
    vww12

    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.

  • avatar
    raph

    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.

    • 0 avatar
      AJ

      Speaking of law firms, today while traveling I stopped for lunch in an old, small town with mostly closed storefronts. The sun was out so afterwards I walked around the downtown streets. There was one brick building with what was once beautiful trim work that had been done by craftsman, now all failing part with a for sale sign on it. It was built by a man of enterprise I figured? And I noticed that the only three nice buildings in the small town were a funeral home, bank and law firm.

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