Uber faces new legal action on driver status

1 Min Read

Taxi-hailing firm Uber faces a fresh lawsuit challenging the status of its drivers, following out-of-court settlements in California and Massachusetts.

A suit filed in the Northern District of Illinois is seeking to reclassify drivers as employees rather than contractors.

In previous settlements, Uber agreed to pay up to $100m (£68m) to drivers.

Crucially though, it did not have to reclassify them as employees.

Reclassification of US Uber drivers would mean they would be entitled to a range of benefits, including sick leave, overtime, health insurance and a minimum wage.

Uber did make a few concessions in the Massachusetts and California lawsuits, including promising to create a drivers’ association and rewriting its policy about terminating contracts.

At the time of the settlement, many of Uber’s critics were disappointed that it would no longer go to court.

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