U.S. District Court Judge Chen has given the initial go-ahead for the proposed settlement agreement between Uber Technologies, Inc. and thousands of their drivers. This proposed $20 million dollar deal would resolve claims against Uber based on the misclassification of thousands of drivers as independent contractors.
The cornerstone issue in this settlement agreement is the impact of Dynamex v. The Superior Court of Los Angeles County, a 2018 California Supreme Court decision that created a strong presumption that workers are employees instead of independent contractors.
Judge Chen requested that both Uber and the workers provide a supplemental brief on how the Dynamex case has influenced the proposed settlement amount for the March 28, 2019 hearing on Plaintiffs’ motion for preliminary settlement. Although Judge Chen has yet to make his final ruling, this proposed settlement agreement demonstrates how the Dynamex decision continues to the effect the gig-economy and many employers.
It is as important as ever for employers to properly classify their workers, in order to avoid shelling out the big bucks. For questions about how to ensure that your workers are properly classified, please do not hesitate to contact our employment attorneys.
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