Last week was a bad week for gig economy companies in Oregon. It wasn’t just the post-holiday malaise that so many suffer from after having to return to work following a long, relaxing weekend that probably included eating too much turkey.
Sure, the monetary portion of the settlement—$10 million to a class of approximately 400 Uber software engineers and over $2.6M in attorneys’ fees—is pretty eye-opening. But perhaps the more significant part of the settlement agreement that was just agreed to by a federal court judge on Wednesday were all of the non-monetary terms.
A federal judge in California recently gave his blessing to an $8.75 million settlement in the ongoing litigation by delivery drivers against the food courier service, Postmates. In the class action suit, which was filed in March 2015, delivery drivers claimed that they were misclassified as independent contractors and were paid less than minimum wage. They contended that by labeling them independent contractors instead of employees, Postmates violated California labor statutes, the federal Fair Labor Standards Act (FLSA), and the California Private Attorneys General Act (PAGA). The plaintiffs asked the court to grant them nationwide class status, which ratcheted up the stakes significantly.