Bad news for Uber.
Uber CEO Travis Kalanick
Bloomberg / Getty Images
A federal judge on Tuesday ruled that Uber drivers are entitled to class action status in a lawsuit over whether they are independent contractors or employees.
In that lawsuit, three Uber drivers sued the company to reimburse them for expenses incurred, including gas and maintenance, that the so-called “independent contractors” have had to pay. This suit could change the designation of drivers from contractors to employees, meaning Uber would have to pay such costs, and it could broadly affect the sharing economy that Uber has come to symbolize.
In a 68-page ruling, U.S. District Judge Edward Chen rejected Uber’s argument that the plaintiffs in the case “do not and cannot represent the interests” of thousands of other California drivers who have worked for Uber.