Based upon a ruling this week, it looks as though Uber will have to defend a class action lawsuit brought by drivers seeking the pay and benefits of employees. The judge’s recent ruling may impact Uber’s growth. It could affect drivers around the country, even though the San Francisco case is limited to as many as 160,000 drivers in CA.
Changing drivers’ status from contractors would likely entitle them to benefits such as unemployment and workers’ compensation, as well as the right to unionize. This week’s ruling by U.S. District Judge Edward Chen means Uber’s California drivers can press as a group for reimbursement for tips. Other courts in the U.S. will likely look to Chen’s reasoning in evaluating other such challenges.