Uber drivers have filed a lawsuit against the company regarding their employment status. This comes after the ride-sharing company raised $3.5 billion from a new investor.
Tech Crunch reported that the New York Taxi Workers Alliance (NYTWA) and 10 Uber drivers are accusing the ride-sharing company of stealing wages. The group represents 5,000 Uber drivers in New York.
The NYTWA filed the lawsuit on Thursday. They claimed that the company skims Uber drivers' wages without providing added protections as employees.
According to Fortune, Uber drivers have been misclassified as independent contractors. The group believes that the drivers should be considered as employees and should be given minimum wage, overtime pay as well as reimbursements for expenses.
Uber spokesperson Matthew Wing has described the lawsuit as "a thinly veiled stunt." He also criticized the NYTWA for only filing the lawsuit on behalf of Uber drivers and not its other members.
Moreover, the group filed a separate lawsuit with the National Labor Relations Board. The other claim alleged that the company was illegally preventing Uber drivers from filing class action suits against the company.
"Uber, through its practices and broken promises, severely harmed the thousands of drivers they recruited and have contributed greatly to a 'race to the bottom,'" the lawsuit read. Apparently, the company has violated state and federal employment laws.
Meanwhile, the company's issue with Uber drivers comes after the startup raised $3.5 billion from a new investor. Inc. reported that Uber has received a cash infusion from Saudi Arabia's Public Investment Fund.
This is the most recent round of funding for the ride-sharing startup which totaled for over $5 billion and increased the company's value at $62.5 billion. It has also become the largest investment from a single investor.
Uber CEO Travis Kalanick has confirmed that the company's partnership with Saudi Arabia is part of efforts to support its economic and social reforms. The company has had operations in the kingdom since 2014.
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