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. A federal judge has rejected a proposed $100 million settlement between Uber Technologies Inc. and drivers in two states, reopening the debate over the car-hailing company’s freelance labor model. 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 is likely to have major implications for Uber, which has faced numerous lawsuits over driver compensation since it launched UberX last year.
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 is likely to have major implications for Uber, which has faced numerous lawsuits over driver compensation since it launched UberX last year.