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Uber hit by America-wide class-action lawsuit

Uber drivers across America are seeking to be reclassified as employees rather than contractors and recoup "unpaid overtime" among other monies.


Uber has just settled class-action suits in Massachusetts and California, and now the company is facing similar suits from Uber drivers in all other states across America. The suit, which was filed on Sunday with the US District Court for the Northern District of Illinois, seeks to reclassify Uber drivers as employees rather than contractors.

This reclassification would see drivers entitled to sick leave, overtime, social security, health insurance and a minimum wage. The Massachussetts and California settlement saw Uber paying out $100 million to the 385,000 plaintiffs. It also means Uber is unable to fire drivers at-will, among other concessions. However, Uber did not have to reclassify its drivers as employees.

The new lawsuit goes a step further than the Massachussetts and California suits, and seeks to also recoup tips "earned but stolen by Uber, or were lost due to [Uber's] communications and policies," the LA Times reports.

Uber said in an email statement, "Nearly 90 percent of drivers say the main reason they use Uber is because they love being their own boss. As employees, drivers would have set shifts, earn a fixed hourly wage, and lose the ability to drive with other ridesharing apps -- as well as the personal flexibility they most value."

Updated May 5, 3.33 p.m. AEST: Added statement from Uber.