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U.S. Judge Rejects Uber Settlement with Drivers
A federal judge in San Francisco has rejected a deal in which Uber Technologies Inc.’s would pay 385,000 of its drivers in California and Massachusetts a combined $100 million to cover their work-related expenses.
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A federal judge in San Francisco has rejected a deal in which Uber Technologies Inc.’s would pay 385,000 of its drivers in California and Massachusetts a combined $100 million to cover their work-related expenses.
Under the plan, which both sides had agreed to before presenting it to the court, the drivers would share another $16 million if Uber goes public and its value then grows 150% in the first year following the initial public offering. But the judge deemed such conditional factors as “not fair, adequate or reasonable.”
The drivers contend they should be classified as employees and thus be entitled to reimbursement for work expenses. Uber argued that its drivers are independents—a position that was protected by the proposed settlement.
Observers predict Uber will drop the two-stage payout and perhaps raise the total to resolve the judge’s objection.
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