Skip to main content
  1. Home
  2. Cars
  3. News

After underpaying its New York drivers for years, Uber settles for $3 million

Add as a preferred source on Google

Uber can subtract one acse from its ever-expanding roster of legal woes (though it likely won’t make a dent). The ridesharing company has agreed to pay up to $3 million as a settlement for a proposed class-action lawsuit on behalf of 2,421 drivers in New York who claimed that Uber was underpaying them. In May 2017, the transportation giant admitted that it had “accidentally” underpaid drivers in the Big Apple for two and a half years, an oversight that was said at the time to amount to tens of millions of dollars.

The settlement was initially filed in federal court on Monday, and still awaits approval from U.S. District Judge Nicholas Garaufis, who is presiding over the case. But even as drivers and their lawyers await final approval, the decision marks a victory in what has become a multiyear ordeal (the complaint was originally filed in December 2015).

Recommended Videos

“The $3 million settlement provides long-overdue compensation to the approximately 2,400 New York drivers that opted out of the arbitration provision in the Uber driver agreement,” said Philip Hines of Held & Hines LLP, the law firm representing the drivers. “The overwhelming majority of New York drivers were not able to successfully opt out of arbitration, and so we are pursuing these same claims on behalf of these clients at arbitration proceedings.”

In addition to having their wages excessively docked, the drivers also claim that Uber is guilty of “false advertising.” As per court filings, Uber suggested in both bus and billboard ads that drivers would make “$5,000 guaranteed” within a month of starting at Uber. Drivers, however, claimed this was patently false, and said that this claim required contract workers to “unlawfully … assume costs associated with the tools of their trade.”

Uber, for its part, has denied charges of wrongdoing, and did not respond to requests for comment.

After initially admitting that it had kept wages from drivers for years, however, the company noted in 2017: “We are working hard to regain driver trust, and that means being transparent, sticking to our word, and making the Uber experience better from end to end.” This settlement may help in making good on that promise.

Lulu Chang
Fascinated by the effects of technology on human interaction, Lulu believes that if her parents can use your new app…
Waymo wants your next robotaxi ride to feel less like a taxi and more like your living room
Your next Waymo ride could come with Gemini as your travel companion
Adult, Female, Person

Waymo is giving its robotaxis one of its biggest passenger-facing upgrades yet, bringing Google's Gemini AI assistant into the cabin alongside a redesigned in-car interface that reimagines how riders interact with autonomous vehicles. Both features will debut in the Ojai, Waymo's purpose-built robotaxi, as the company prepares to expand access to more public riders. Rather than changing how the vehicle drives, the update focuses on what passengers can do once they're inside, signalling that the next phase of the robotaxi race may be fought on experience rather than autonomy.

For years, autonomous vehicle companies have competed on sensors, safety records and driverless capabilities. Waymo now appears confident enough in those foundations to shift attention toward the cabin itself, treating the journey as a product rather than simply a trip from one location to another.

Read more
Two Indian automakers just beat Tesla at the one thing you’d expect it to own
Two Indian automakers, Tata Motors and Mahindra, just topped a global EV efficiency ranking ahead of Tesla and BYD.
Car, Suv, Transportation

I'll admit, Tesla topping an efficiency ranking felt like a foregone conclusion until I actually saw the numbers. Turns out two Indian automakers just embarrassed both Tesla and the world's biggest EV maker at their own game. 

The first time I read the report, I couldn’t believe it, and I’ve been following the Indian automobile industry for a couple of years now.  

Read more
BYD’s new Racco is Japan’s first electric kei car with over 300 km range
The Racco also undercuts Nissan's Sakura on price before taxes and incentives, which packing in features rarely seen in the kei car segment.
BYD Racco

BYD has entered the Japanese kei car market with the Racco, an electric car built specifically for the country's compact car segment. Its top trim delivers 320 km of range, making it the first compact electric car in the market to pass 300 km, according to ITHome.

Kei cars are a Japanese vehicle class with strict size and power limits, and the segment has long been dominated by domestic automakers such as Honda, Nissan, Suzuki, and Daihatsu. The Racco is BYD's first attempt to compete in that space.

Read more