Last week, a settlement was announced in the class action lawsuit against Uber covering its drivers in California and Massachusetts. The lawsuit centered around the issue of whether the law required Uber to classify its drivers as employees instead of independent contractors. Uber and the law firm representing the drivers have issued statements describing the terms of the settlement.
Due to the settlement, the legal classification of Uber drivers is still unresolved. Indeed, there is still a case wending its way through the California court system on this issue. Nevertheless, the settlement, if the court approves it, will produce some significant changes at Uber.
The issue of whether a worker is an independent contractor or employee oftentimes boils down to how much control the company has over the worker. Some of the reforms that Uber has agreed to in the settlement seem to push Uber drivers closer to the definition of independent contractors, including an agreement that Uber will no longer deactivate drivers because they choose not to accept riders. This will give Uber drivers more control over rides they accept. They will be able to decide, for instance, to only pick up riders who want to go certain places. That way, if a driver wants to start making their way home at the end of the day, they won’t have to accept a rider that wants to go in the opposite direction of the driver’s home.