The dialogue between Uber and drivers in California and Massachusetts is almost settling down. A proposed settlement has been put on the table that could save the ride-hailing company over $600 million in expected pay-outs to Uber drivers regarding work-related costs.
The advantage that Uber will get from the settlement is $600 million worth which means that the company will only be shelling out $100 million instead.
However, the issue regarding Uber drivers being classified as regular employees by the company is still undetermined. Uber is known for using independent contractors as drivers because that is their core business model. Uber drivers are being given a sense of ownership and flexibility in work hours, as told by Computer World.
If stated as employees, the Uber drivers in California are expected to receive as much as $426 million in mileage expense reimbursement for trips made on the ride-hailing platform between 2009 and April of this year. Uber had put the amount much lower at $169 million. Massachusetts drivers would have gotten another $98 million.
Uber also said it would appeal the matter further, if necessary, in the Supreme Court. The company insists that they have satisfied Section 2802 of the California Labor Code, which deals with employee expenses, by structuring the fare to be an all-inclusive one that takes into account things like expenses.
Cases filed against the ride-hailing company states that Uber drivers have been doing this kind of work every night and day, making it a full-time job. Lawyers representing these drivers urge Uber to reconsider. It has been reported that drivers are being taken advantage because they do not have a union group that can protect them.
California and Massachusetts are not the only states that Uber is concerned about. Class-action lawsuits in Florida and Illinois have also been filed.
