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Uber Hits Back at Potential Class-Action Lawsuit by Drivers

A lawsuit filed by three drivers against ride service Uber should not proceed as a class action, the company argues in a court filing in California.
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A lawsuit filed by drivers against ride service Uber should not proceed as a class action, the company argued in a court filing on Thursday, citing written statements of support from hundreds of other Uber drivers in a case that could decide whether they are independent contractors or employees.

Three drivers sued Uber in San Francisco federal court, contending they are employees and entitled to reimbursement for expenses, including gas and vehicle maintenance. The drivers pay those costs themselves. If allowed to proceed as a class action, the lawsuit could cover more than 160,000 California drivers. The results of this broader legal battle could reshape the sharing economy, as companies say the contractor model allows for flexibility that many see as important to their success. An ultimate finding that drivers are employees could raise Uber's costs beyond the lawsuits' scope and force it to pay Social Security, workers' compensation, and unemployment insurance.

Related: Uber Driver Is an Employee, Not Contractor: California Labor Commission

In court on Thursday, Uber cited written statements from more than 400 drivers supporting the company. At least two drivers said that if courts decided that they are Uber employees, they would not be able to work for multiple ride services.

Uber drivers "have little or nothing in common," the company argued, because they all differ significantly in the way that they engage with the company. Some hire subcontractors while others run their own transportation companies, and those differences make the case unmanageable to proceed as a single class action, the company said.

Related: Uber Bans Drivers and Passengers From Carrying Guns

In previous court filings, the plaintiffs argued that Uber exercises enough control over its drivers, including the ability to terminate them, for them to be considered employees.

The case in U.S. District Court, Northern District of California is Douglas O'Connor et al vs. Uber Technologies Inc, 13-3826.