LOS ANGELES — Thousands of California Uber drivers fighting to recover unpaid overtime and mileage reimbursements may see little reward for their efforts if a proposed settlement between the defendant and one attorney goes through. The case highlights just how complicated class action unpaid overtime lawsuits can be, as well as the lengths many defendants may go to minimize payouts at the expense of aggrieved workers trying to recover back pay.
Believe it or not, an attorney representing millions of drivers across the state of California against Uber wants a federal district court judge to accept a settlement offer that would compensate drivers only $1 each for their lost wages. If accepted, the 1.6 million California Uber drivers would receive their share of $1.7 million dollars, after attorney’s fees and payouts to the state.
The reason for the proposed suit goes back to August 2016 when a federal judge struck down a proposed $100 million settlement in the case, claiming the resolution would not adequately compensate drivers. One month later, a court of appeals dealt a huge blow to the plaintiffs’ unpaid overtime lawsuit, ruling that each driver must arbitrate claims individually with the company.
Plaintiff Brings Enforcement Action Under Little Known California State Law
The latest settlement development comes after one plaintiff utilized California’s Private Attorney’s General Act (PAGA), also known as the “bounty hunter law,” which allows private citizens to bring enforcement actions against companies. These types of claims cannot be remanded to arbitration and are a creative way for plaintiffs to seek justice and hold wrongdoers accountable.
While the attorney in the PAGA enforcement initially claimed the action could result in a multi-billion dollar award, he has since rescinded and asked a San Francisco judge to approve a meager $7.75 million, with 75 percent going to the state and attorneys’ fees and only $1.7 million allocated to the actual plaintiffs in what the plaintiff’s attorney called a “a reasonable and fair compromise,” according to sources.
Rideshare Driver Overtime Lawsuit
This case highlights the lengths former employers may go to when their employees stand up for their legal rights and bring claims for unpaid overtime wages. Having an experienced overtime lawsuit attorney on one’s side can help navigate these legal pitfalls and give plaintiffs their day in court.
If you believe that your wage rights were violated under the FLSA and may have a claim, call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page. Our law firm has a team of experienced and dedicated overtime wage lawsuit attorneys ready to help you understand your legal rights.