Is Uber’s Battle to Avoid Class Action Trouble Over Driver Classification Finally Over?

In February 2022, a Motion for Preliminary Approval of a Settlement was filed with the Northern District of California Court. If the judge grants approval of the preliminary settlement agreement, Uber’s battle to avoid class action trouble over their classification of drivers could be over.

The Case: Christopher James, et al. v. Uber Technologies, Inc.

The Court: U.S. District Court for the Northern District of California

The Case No.: 3:19-cv-06462-EMC

Background of the Case: Christopher James, et al. v. Uber Technologies, Inc.

The years-long battle that began when the case was filed could finally be coming to a close with the proposed $8.4 million deal reached between Uber Technologies Inc. and more than 1,300 California drivers. (The Uber drivers in the case allege they were misclassified as contractors and therefore denied many rights they were due as California employees). The judge’s approval of the preliminary settlement would effectively put an end to one of the major court battles afflicting the gig economy that predate the passage of California’s Prop 22.

The Case: Christopher James, et al. v. Uber Technologies, Inc.

The proposed settlement award would be distributed amongst 1,322 drivers that both opted out of arbitration agreements and worked for Uber between Feb. 28, 2019, and Dec. 17, 2020 (the date Prop 22 was enacted). Prop 22 is a ballot initiative Uber helped to fund that was designed to legally define app-based drivers as independent contractors. In November, Uber and the drivers involved agreed to dismiss the case as they reached an agreement. The final approval hearing for the deal is scheduled for June in the U.S. District Court for the Northern District of California. If approved, the $8.4 million settlement would follow the previously approved $20 million settlement that came through the same court in 2019 to resolve a case between Uber drivers dispersed throughout both California and Massachusetts.

More About the Case: Christopher James, et al. v. Uber Technologies, Inc.

While approval of the settlement would close the case and avoid further class action on the matter, the settlement does not answer the question of whether Uber drivers are employees entitled to benefits outlined by labor law like overtime pay, minimum wage, reimbursement of business expenses, etc. The debate on this issue continues. In fact, following a state judge striking down Prop 22 as unconstitutional, a California appellate court currently weighs the question.

If you have questions about California labor law violations or how employment law protects you against violations in the workplace, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.