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More States Sue: Will Uber Driver Employment Issues Ever Be Solved?

June 30, 2016
Colson Hicks Eidson

For Uber drivers in California and Massachusetts, a long battle is coming to an end. Uber has submitted a settlement that could end the lawsuit filed by several of its drivers in both states, but will a settlement really end the company’s strife over vague employee treatment?

More States Sue: Will Uber Driver Employment Issues Ever Be Solved?

The price for not properly defining the employment status of 385,000 Uber drivers is $100 million, but that’s only in the states of California and Massachusetts. The settlement, which is expected to cover overtime costs and work-related expenses, has yet to be approved by a judge. However, if it is approved, then there will be no clear ruling on whether or not Uber drivers are independent contractors or employees who deserve benefits.

Since the settlement still leaves the employment status of Uber drivers undefined, then the company’s other drivers are still open to question what Uber owes them. That is why two nationwide class action suits, one in Illinois and one right here in Florida, have been filed by more Uber drivers seeking fair pay for their time and the wear-and-tear on their vehicles.

Why Were More Lawsuits Filed?

Each suit lays claim to both unpaid overtime and work-related expenses—just like the California, Massachusetts case—but the Illinois lawsuit goes even further. The suit claims that Uber owes its drivers for tips that were earned, but was stolen by the ride-sharing titan. Uber, unlike Lyft, has no tip option during its checkout. Instead, the company claimed that tips were included in the fare, but as part of the California, Massachusetts settlement, drivers can ask for a tip. This has left many drivers angry over the potential tips that they missed due to the lack of clarity from Uber.

Do you think these drivers have a case? Would it have been better for Uber to get a verdict instead of a settlement? Keep following our blog and learn the answers to your concerns about rideshare employment issues.