If approved, the Oct. 16 agreement would resolve a collective action under federal wage law that was joined by more than 5,000 drivers who had opted out of Uber’s arbitration program.
Michael Hood sued Uber in North Carolina federal court in 2016, alleging the company should have categorized drivers as employees, which would have entitled them to minimum wage, overtime, and other legal protections.
Hood said in settlement filings that the $1.3 million deal is fair given the risks of continued litigation. Hood’s legal team, which would get more than $400,000 in attorneys’ fees, estimated the ceiling for damages in the case at nearly $3.4 million.
The case is Hood v. Uber, M.D.N.C., 16-00998, motion for approval of settlement 10/16/18.
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