Uber has agreed to fork up to $3 million in the preliminary settlement of a class-action claim in New York. In the litigation, Uber drivers accused the ride-hailing company of breaking of contract and fake advertising. The settlement was filed Monday in Brooklyn, New York, but still needs last .approval by U.S. District Judge Nicholas Garaufis
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In the class-action claim, Uber drivers say that in calculating driver services fees, Uber included sales tax and a “Black Car Fund” fee, which reduced drivers’ total compensation and was a breaking of contract. In regards to fake advertising, Uber had promised that in their first month on the road, drivers could “DRIVE & MAKE $5,000 Guaranteed .” However, the company went wrong to .properly expose the conditions of that offer
Uber has denied the claiming , but it agreed to solve the situation without confessing it had done anything wrong. This would save money for both sides when it comes to claiming costs. In the settlement, Uber drivers also agree to being categorized as independent contractors ,another case they’d been fighting. Previous class-action claim in other states like Massachusetts and California already ruled that drivers were freelance workers. However, these suits also mandated that the .company should be more clear about its employment and driver-termination guidelines
