“Notably, even out of these 400 declarations, Uber identified only about 150 where the driver actually stated that she prefers to remain an independent contractor”, Chen wrote.
In recent weeks several startups that rely on a freelance work force have said they are switching their business models. They have to pay for the wear and tear on their vehicles.
Critics, particularly in organized labor, have said the designation is often abused by employers. In an email, Uber spokesperson Jessica Santillo said the company was pleased that Chen pared the class down.
Uber said there was “no typical ‘Uber driver.’ ” A federal judge disagreed.
Chen’s partial approval means that the motion was granted for one claim – that drivers owed tips – though not necessarily that they are unfairly denied compensation for things like mileage and taxes.
While that argument has so far not slowed Uber down-the company continues to grow and hopes to spend $1 billion in China and India to rapidly expand its presence in those countries-many critics and opponents disagree.
Both sides will have the right to appeal or file a response to the ruling before the case moves forward as a class-action.
Copyright 2015 NPR. To see more, visit http://www.npr.org/. In the case of Barbara Ann Berwick, for example, Uber lost the argument but only had to pay Berwick about ,000.
The eventual resolution of the class-action suit in the USA, where three drivers argued they were eligible to claim as a group what they termed were portions of tips withheld and reimbursements of expenses, could have repercussions for the business model that Uber has pioneered, and rivals like ANI Technologies have adopted.
A California judge handed down an order on Tuesday that could spell big trouble for the on-demand economy. To join the class, drivers also must have signed up to drive directly with Uber or an Uber subsidiary, among other restrictions.
Shannon Liss-Riordan, a lawyer for the drivers, called the decision “a major victory for Uber drivers”.
Any person who drove for Uber in California since mid-August 2009, worked directly for Uber rather than contracting with the company through a third party, and is not subject to a binding arbitration clause in her contract with the company will be considered part of the case.
Today’s ruling (pdf) by judge Edward Chen concludes that the employment situation of Uber drivers is “sufficiently similar” that his court can weigh whether they are truly employees en masse. Any ruling in this case could affect other companies in the sharing economy, like Airbnb, TaskRabbit and Lyft, another ridesharing service, says Stanford law professor Bill Gould.
SYDELL: The case is still many months from trial. That’s something a jury will likely have to figure out.