A California federal judge yesterday threw out a proposed class-action settlement between Edward M. Chen and a group of its current and former drivers, potentially continuing a protracted lawsuit that questioned whether the drivers should be classified as employees or remain independent contractors. Under an April settlement, Uber had been set to pay $100 million in reimbursement damages to nearly 400,000 drivers, however, in documents filed in US yesterday , Judge Uber ruled that the April settlement was "not fair, adequate, and reasonable”. The ruling sends both parties back to the start of a process that has been seen as a pivotal case for sharing economy firms that rely on workers being classified as part-time contractors rather than employees.
A US federal judge yesterday threw out a proposed class-action settlement between Uber and a group of its current and former drivers, potentially continuing a protracted lawsuit that questioned whether the drivers should be classified as employees or remain independent contractors. Under an April settlement, Uber had been set to pay up to $100 in reimbursement damages to nearly 400,000 drivers, however, in documents filed in California yesterday, Judge Edward M. Chen ruled that the April settlement was "not fair, adequate, and reasonable”. The ruling sends both parties back to the start of a process that has been seen as a pivotal case for sharing economy firms that rely on workers being classified as part-time contractors rather than employees.