On April 21, the ride-sharing company Uber announced that proposed settlements had been reached in class action lawsuits brought in California and Massachusetts by drivers who asserted -- among other things -- that they had been misclassified as independent contractors as opposed to employees. Notably, the proposed settlements, which grant drivers a number of concessions, do not address the employee classification issue.
Hirschfeld Kraemer LLP Co-managing Partner and ELA Founder Stephen J. Hirschfeld and Partner Daniel H. Handman provided the following commentary:
Law360, "Uber's $100M Driver Deal Won't Curb Future Labor Suits," April 22, 2016:
“'They’re (Uber) definitely kicking the can down the road,'” said Dan Handman, a labor and employment litigator with Hirschfeld Kraemer LLP. 'They feel they have enough safeguards in place so that in the future, the stakes will not be nearly as high as they were in this case. Maybe with a different judge in a different court, but with this one, the writings were on the wall.'”
To read the full article, please click here.
The Recorder, "Uber Deal Signals Open Season on Gig Economy," April 22, 2016
"Daniel Handman of employer firm Hirschfeld Kraemer was even more blunt (on the impact of this development). 'I really think that this case was just the tip of the iceberg," he said."
To read the full article, please click here.
San Francisco Business Times, "Uber settlement means big changes but little money for drivers – if approved," April 22,2016:
"Stephen Hirschfeld, CEO of the San Francisco-based Employment Law Alliance, added that he'd 'be very surprised if the judge doesn’t approve the settlement. 'It's hard for me to think that there are any plaintiffs' lawyers who can do better based on the merits of this case.'"
"'Given the peculiarities of this case and Uber’s business in general, I do not think this settlement will have a profound effect on the way that companies classify workers,' said Daniel Handman of employment law firm Hirschfeld Kraemer's San Francisco office. 'However, the size of this settlement will certainly force companies to give these issues careful consideration in the future.'"
To read the full article, please click here.
Los Angeles Times, "Uber drivers welcome that $100-million settlement, but here's what they're still missing," April 23, 2016:
"At the very least, the changes Uber implemented represent a new floor for worker protections in the gig economy, according to Steve Hirschfeld of law firm [Hirschfeld Kraemer LLP], who advises on-demand start-ups in the Bay Area. In consulting with companies, he says many firms are already looking for ways to improve their relationship with workers in order to avoid costly litigation."
To read the full article, please click here.
Daily Journal, "Uber settlement leaves questions about judge's approval, arbitration," April 25, 2016:
"'If Uber is right that their arbitration contract is going to hold water, that puts a huge potential liability behind them,' said Daniel H. Handman, an employment defense lawyer at Hirschfield Kramer LLP....'The most striking part of the settlement is that Uber can continue to classify their drivers as independent contractors,' Handman said. 'I think the judge will approve, but that is the biggest obstacle to him.'"