Uber Reaches $1.3M Deal In FLSA Action
October 16, 2018
Uber Technologies Inc. will pay $1.3 million to settle Fair Labor Standards Act claims from more than 5,000 drivers who aren’t bound by arbitration agreements and alleged the ride-hailing giant misclassified them as independent contractors instead of employees, according to a North Carolina federal court filing.
According to Tuesday’s filing, about $734,294 of the settlement fund will be paid to plaintiffs who opted into the litigation and $5,000 will compensate Hood for the services he rendered on behalf of the FLSA collective. In addition, $434,750 will be paid in attorneys’ fees, $90,205 will go toward litigation expenses and $40,000 will be paid to Garden City Group, the settlement administrator, according to the filing.
Given the risks of continuing with litigation, a $1.3 million settlement is substantial, the drivers said.
The plaintiffs are represented by Napoli Shkolnik PLLC among others.