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"gewg_" writes:

The Center for American Progress reports:

Uber's business model is on the rocks [September 1] after [Federal Judge Edward Chen] granted class-action status to a lawsuit targeting the company's treatment of drivers as independent contractors.

[...] There are 160,000 drivers who will be party to the current lawsuit alleging that drivers are full employees of Uber with full labor law protections, rather than independent contractors. Any person who drove for Uber in California since mid-August 2009 and is not subject to a binding arbitration clause in her contract with the company will be considered part of the case.

[...] A jury trial will still determine whether Uber drivers meet the legal definition of employees--in which case the company would owe massive amounts of back pay to all eligible drivers--or not. And Chen did not give the drivers everything they wanted. The judge rejected class status for drivers' claims involving Uber policy around reimbursing expenses like gas, tolls, and the cost involved in a canceled fare.

[...] The cost of paying back wages and payroll taxes for the entire class, while certainly smaller than the $50 billion that the company is currently worth according to investors, would be vast.

takyon: Also at MarketWatch. In Seattle, City Council members have announced a bill that could allow Uber, Lyft, and other for-hire drivers to unionize.