SAN FRANCISCO, Aug. 19 (UPI) -- A U.S. District Court judge threw out Uber's proposed $100-million settlement to keep their drivers from being actual employees.
Judge Edward Chen of the Northern District of California issued the court order on Thursday, ruling Uber's pay off was "not fair, adequate, and reasonable" and only 10 percent of the value of the drivers' claims.
San Fransisco-based Uber offered to pay their drivers $84 million plus another $16 million if the company goes public. The pay off was Uber's alternative to making the drivers of their ride-hailing company actual employees, who would then be able to receive overtime and other benefits.
The court order included a chart revealing Uber drivers could claim $122 million in tips, $2.4 million in overtime, $700 million in mileage reimbursement, and $30 million in phone reimbursements.
Chen also disparaged other parts of the settlement, allowing the company to continue to kick out drivers from the app for any reason and discouragement of tipping.
"The settlement, mutually agreed by both sides, was fair and reasonable," Uber spokesman Matt Kallman said in a prepared statement. "We're disappointed in this decision and are taking a look at our options."
Shannon Liss-Riordan, the Uber drivers attorney, told Wired a new settlement is could be worked out. "It is possible the parties could reach a revised agreement that satisfies the court's concerns," she wrote. "But if not, as I've said before, I will take the case to trial and fight my hardest for the Uber drivers."
