United States: Uber has to justify that the compensation it promised is sufficient in exchange for drivers dropping a class action over employment status misclassification

On 30 June the judge in charge of accepting the terms of a settlement agreement that was meant to halt collective action by Uber (online platform based chauffeur service) drivers in California, actually suspended the final decision pending further information. The information will enable the judge to determine if the financial package ($84 million plus an extra $16 million if Uber launches on the stock exchange) the company committed to paying is in fact sufficient to compensate for drivers abandoning their demand to be reclassified as salaried employees.
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The April 2015 agreement (c.f. article No. 9624) was enabling the Californian company that defines itself as a platform whereby ‘users and chauffeurs connect’ to maintain its ‘freelance worker business model’. In exchange for dropping the call to be reclassified as salaried employees, the drivers would have received a compensation fund into which the company would have paid at least $84 million.

The agreement had to be validated by the courts and on 30 June the Californian judge examining the ca

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