Uber Win: Settlement Allows Ridesharing Service to Keep Denying it Has 'Employees'
Ride sharing service Uber announced Thursday it settled two class action lawsuits, with the company agreeing to pay up to $100 million to workers and being able to continue to classify its drivers as “independent contractors.”
USA Today described the settlement affecting roughly 385,000 workers in California and Massachusetts as “a big win for a company whose business model depends on keeping costs low by merely serving as a conduit between drivers and riders, rather than being an employer.”
As Steven Hill, an author whose books include Raw Deal: How the “Uber Economy” and Runaway Capitalism Are Screwing American Workers, previously wrote, “because Uber drivers are classified as independent contractors—1099 workers—they are not entitled to any health benefits, Social Security, unemployment or injured workers compensation, paid sick or vacation leave, or any other safety net benefits.”
“They’re outside the labor laws,” wrote Robert Reich, a public-policy professor at the University of California, Berkeley, and a former Secretary of Labor. Reich called the designation
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