Everything You Need to Know About Lawsuits Against Uber

Learn what these legal actions against Uber could mean for you.

Uber is one of the best know tech company in the United States with millions of drivers and riders.

If you’re experiencing issues with Uber, you’re not alone and may be able to receive compensation. There are several current lawsuits and claims filed against Uber already.

Most of these lawsuits are class action which means you may be able to get in on the settlement. Take a look at this list of lawsuits against Uber to see if you might be affected.

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1

Are lawsuits against Uber allowed?

It’s likely your Uber contract says you can’t sue Uber in any court except Small Claims Court, thanks to an arbitration clause.

Because suing through Small Claims Court can be time-consuming and complicated, we suggest consumer arbitration as a better solution.

2

What is a class action lawsuit? Can I file this type of lawsuit against Uber?

Class action lawsuits are designed to bring together a group of individuals with the same complaint.

If your Uber contract does not have an arbitration clause, then you are eligible to join a class action lawsuit.

However, if you see an arbitration clause in your contract, you may not be able to file or join an existing class action lawsuit.

3

As an Uber customer, what are my options for a lawsuit against Uber?

One option you have is to sue Uber in Small Claims Court. If your claim qualifies for Small Claims Court, you will be asked to attend a court hearing and pay legal fees to make your case.

Rider damaged by vehicle, Uber refused to compensate or provide rider info to sue in small claims court.

Anonymous Complaint

Or, you can do everything from your home. Consumer Arbitration is the process laid out by Uber contracts in place of a lawsuit. It lets you argue your case before an independent arbitrator (like a judge) who can force them to fix the problem and to compensate you. We at FairShake help make this process easy and convenient.

4

Top 4 Uber Lawsuits

Uber Sued by the New York Taxi Workers Alliance

According to the Washington Post, in 2019 Uber drivers in New York filed a lawsuit against Uber alleging that the company incorrectly deducted taxes from driver’s paychecks and incorrectly calculated income to drivers from rides:

The lawsuit was filed in federal court in Manhattan on Wednesday by the New York Taxi Workers Alliance, an organization with about 22,000 paying members that advocates on behalf of drivers. Roughly half of the alliance’s drivers do their work through apps such as Uber and Lyft, the group says.

The lawsuit says 96,000 drivers are owed money for two violations. The drivers allege that Uber deducted money from their paychecks for both the state’s sales taxes and a surcharge meant to apply to rides between states. They claim their contract with the company requires them to be paid the passenger’s full fare minus Uber’s service fee. The lawsuit also alleges that the company used a manipulative system of payments in which customers were paying a higher fare than what was being reported to drivers, with Uber pocketing the difference.

Uber Class Action Lawsuit by California Drivers

Uber was sued in 2019 for allegedly misclassifying drivers as contractors instead of employees under California’s new gig economy law. If the drivers prevail, they would be entitled to benefits awarded to employees like unemployment insurance and worker’s compensation. The New York Times covered the story:

A longtime legal antagonist filed a class-action suit on behalf of drivers in federal court in California on Wednesday, accusing Uber of wrongly classifying drivers under the state’s employment test.

In the complaint, the lawyer, Shannon Liss-Riordan, said Uber had failed to pay its California drivers the minimum wage, overtime and expense reimbursements that they are entitled to as employees. The complaint asked the court to issue an injunction requiring the company to reclassify drivers.

“Uber is grasping at straws,” Ms. Liss-Riordan said of Uber’s argument that it did not need to reclassify its drivers. If she were to prevail, Uber could be required to pay hundreds of millions of dollars to drivers in lost compensation and reimbursements.

Uber Sues the State of California Over New Gig-Worker Law

Uber and Uber drivers are fighting California’s new law that makes it harder for companies to classify drivers as independent contractors. Uber filed a lawsuit at the end of 2019 challenging the law as reported by the San Francisco Chronicle:

Uber and Postmates have mounted a legal challenge seeking to block AB5, California’s landmark gig-work law scheduled to take effect on Jan. 1, that could turn the companies’ drivers and couriers into employees rather than independent contractors.

AB5 is “irrational and unconstitutional,” contends a lawsuit, Olson vs. California, filed Monday in U.S. District Court in Los Angeles. The plaintiffs — Uber, Postmates, an Uber driver and a Postmates courier — say they seek to defend the “fundamental liberty to pursue their chosen work as independent service providers and technology companies in the on-demand economy.” AB5 violates due process by infringing on this right, the lawsuit says.

The suit claims that AB5 targets “modern app-based” ride and delivery companies, even while exempting dozens of other professions, thus violating equal protections.

Uber Lawsuit Settlement of Class Action Lawsuit 

According to The Verge, the Uber settlement agreement is worth $20 million and applies to a class of about 13,600 drivers. The settlement agreement provides money for miles driven with Uber and focuses on Uber’s deactivation policy. The Verge covered the story:

The fight over the classification of ride-sharing drivers as independent contractors appears to be over after Uber announced that it settled a pair of long-gestating lawsuits for $20 million. The resolution is a boon to Uber, which is preparing its initial public offering for later this year.

The initial case, O’Connor v. Uber, was first brought by a group of Uber drivers in 2013 who argued they should be categorized as employees rather than freelancers. By classifying drivers as contractors, Uber avoids providing benefits of traditional employment such as health insurance, paid sick time, and workers’ compensation, the drivers argued.

[…]

Last year, the Ninth US Circuit Court of Appeals reversed O’Connor v. Uber’s class certification status, nullifying the decision on the ground that Uber’s arbitration clause prohibits class actions. The appeals court ruling ultimately reduced the size of the class to about 13,600 drivers who will participate in the settlement.

Has Uber wronged you? Read about suing Uber in small claims court. Even if you aren’t able to cash in on these listed lawsuits, your complaint may fit arbitration with Uber. We may be able to help you file a claim and get compensated.





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