$195,000 Settlement Announced between Uber and Cab Drivers

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James Hatton,
Legal Staff Writer

On March 13, 2019, Uber agreed to pay $195,000 to seven New York City cab drivers to resolve claims that Uber exploited them as independent contractors.

The drivers filed suit in 2016, claiming that Uber classified them as independent contractors when they should have been considered employees. This resulted in Uber failing to pay the drivers minimum wages, overtime and reimbursement of various business expenses. The drivers sought conditional class certification, but a judge ultimately denied their motion.

The settlement deal came just days after Uber agreed to pay $20 million to end similar claims from over 14,000 drivers in Massachusetts and California. Uber is not alone in facing such claims—companies such as Amazon, GrubHub, Lyft, and Doordash are companies with comparable business models who have been charged with similar claims. The settlement includes $65,000 in attorneys’ fees and $3,200 in court costs in exchange for the drivers to release their claims.

The case is: New York Taxi Workers Alliance et al. v. Uber Technologies Inc. et al., Case No. 1:16-cv-04098 in the U.S. District Court for the Southern District of New York

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