It's back to the drawing board for Uber and thousands of its drivers. U.S. District Judge Edward Chen rejected a proposed settlement between the two yesterday, saying that the agreement falls short of what is "fair, adequate, and reasonable."
The drivers' class action lawsuit alleges that Uber had misclassified its drivers in California and Massachusetts as independent contractors, instead of employees, denying them the protections of state and federal labor laws. The settlement left the question of the drivers status unanswered, in exchange for a potential $100 million payout and some small changes to Uber policy. Chen's rejection of the settlement is a significant blow to Shannon Liss-Riordan, the attorney representing the drivers, who has been criticized for allegedly selling the Uber drivers short.