CHICAGO — Days before ridesharing company Uber settled a $100 million unpaid wage and overtime lawsuit with thousands of drivers, plaintiffs in Illinois filed their own class action lawsuit.
According to multiple reports, Uber could have been on the line for almost $1 billion dollars in back tips and overtime had its drivers been classified as employees and not independent contractors.
Approximately 385,000 drivers in California and Massachusetts had filed lawsuits against Uber, claiming they were employees and not independent contractors, as the company claimed.
To settle the California-Massachusetts suit, Uber will make a near term payment of $84 million to the class of plaintiffs and another possible payment of $26 million if certain financial benchmarks are met by the company.
Of the main issues over whether or not Uber drivers were independent contractors or actual company employees stems from the dispute over drivers being able to decline a certain amount of trips while on duty.
Under the Fair Labor Standards Act, independent contractors must exercise control over their own work and their contract may only be terminated as it pertains to the quality of that work.
Uber Avoids Multi-Million Dollar Lawsuit
To avoid this potential employment classification, Uber agreed to settle what could have been a monumental and possibly debilitating $852 million in damages.
Rideshare competitor Lyft recently attempted to settle its own class action lawsuit with its driver for $12.5 million, but that offer was rejected by a federal judge.
The latest Uber class action wage suit filed in U.S. District Court in Chicago asks the court to formally classify Uber drivers as employees, rather than independent contractors.
Attorneys brought the suit on behalf of all past and present Uber drivers around the country, except for the 385,000 who settled with Uber in the California-Massachusetts class action lawsuit.
The suit could have wide-ranging implications for Uber’s driver as it relates to unpaid tips, overtime, and workers’ compensation payments. While the latest suit is still in its infancy, it may settle once and for all how Uber and other ridesharing drivers are classified and whether or not they are entitled to overtime wage payments.
Uber driver overtime lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that you and and other employees believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.