Judge Unlikely to Grant Uber’s Bid to Toss Lawsuit Claiming Racial Bias

A California federal judge appears unlikely to toss a former Uber driver’s lawsuit claiming his firing stemmed from a racially biased rating system.

Details of the Case: Thomas Liu et al. v. Uber Technologies Inc.

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

Case No.: 3:20-cv-07499

The Plaintiff in the Case: Liu v. Uber

A former Uber driver, Thomas Liu, is from Hawaii and of Asian descent. Liu filed a suit against his former employer, Uber, claiming discrimination in fall of 2020. Liu alleged Uber “deactivated” him in October 2015 due to his rating in the app; which fell below the standard set by the ride-sharing giant. The star-rating system in use by Uber allows passengers to rate their drivers on a scale of one to five stars (with five being the best rating). Drivers are required to maintain a certain level star rating determined by Uber to avoid deactivation. In March 2021, the judge tossed the complaint because it was “sparse and poorly drafted.” After amending the complaint, Liu added disparate treatment and disparate impact claims under California state law. Uber again moved to have the suit tossed in April 2021. In June 2021, the judge appeared to be allowing Liu’s disparate impact claim, but agreed with the Defendant that the disparate treatment claim should be tossed.

The Defendant in the Case: Liu v. Uber

Uber's counsel argued that the plaintiff failed to connect his personal experience of alleged racial discrimination as a driver for ride-sharing giant, Uber and the impact that discrimination had on his rating to the argument. They also argued that the social science article* Liu cited in the amended complaint is conclusory. However, the judge disagreed - stating he did not find the article conclusory. Instead he noted that there appears to be a body of research finding discriminatory terminations may result from online marketplaces with employment hinging on consumer-sourced rating systems. The judge also pointed out that when Uber defended its decision to disallow tipping of drivers, they acknowledged that passengers’ tipping behaviors were influenced by bias.

* In the amended complaint, Liu cited a 2016 paper titled "Discriminating Tastes: Customer Ratings as Vehicles for Bias," which suggests that consumer-sourced rating systems, like the star rating system used by Uber, are highly likely to be influenced by bias, including by factors such as race.

Does Uber’s Star-Rating Determining Eligibility of Drivers Allege Discrimination?

While the case is not yet decided, the California federal judge seemed unlikely to grant Uber’s bid to toss a racial bias suit during the June 2021 remote hearing. The judge said it seemed the driver’s allegation that his termination was based on a rating system that disparately targets minorities appeared plausible. The plaintiff seeks to represent a nationwide class of Uber drivers who either lost their position or risked the loss of their position due to poor ratings from passengers.

If you have questions about California labor law violations or discrimination 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.