Uber Compensation Lawsuit Now A Certified Class-Action
Uber Compensation Lawsuit Now A Certified Class-Action
A lawsuit claiming that Uber shorted its drivers’ wages has been granted class-action certification.Thousands of drivers across the United States could be eligible to opt into the litigation so long as they didn’t sign an arbitration agreement with the San Francisco-based ride aggregator.The Los Angeles Times recounts the suit’s history – how, in the past, Uber drivers were compensated based on how many miles they drove and the amount of time they spent on individual trips. After dropping a passenger off, 80% of the fare would be passed onto contractors, with the rest heading to the corporation’s coffers.A year and a half ago, Uber made an important change to its pricing system.In August 2016, the app introduced “upfront pricing” – a feature providing passengers with a total before ever booking an Uber.Plaintiffs in the fresh class-action accuse Uber of stealing their wages after the feature’s implementation. They claim that, after “upfronting pricing” became a standard feature, Uber increased its fares.Despite the increase in rates, drivers were still compensated based on outdated calculations – often receiving less than 80% of the overall fare as a result.“Uber has failed to properly act as a payment collection agent for Plaintiffs and other drivers,” reads the lawsuit. “Uber’s failure to pay the amounts promised under the Agreement and the Addendum is a material breach of the Agreement.”
An example of Uber's upfront pricing. Image by Ryan J. Farrick.
Sources
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About Ryan J. Farrick
Ryan Farrick is a freelance writer and small business advertising consultant based out of mid-Michigan. Passionate about international politics and world affairs, he’s an avid traveler with a keen interest in the connections between South Asia and the United States. Ryan studied neuroscience and has spent the last several years working as an operations manager in transportation logistics.