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Uber to Pay $1.3M Misclassification Settlement (Corrected)

Jan. 3, 2019, 7:03 PMUpdated: Jan. 4, 2019, 2:03 PM

Uber Technologies Inc. and drivers who say they were misclassified as independent contractors won final approval of a $1.3 million settlement.

More than 5,000 drivers will receive payouts ranging from $50 to almost $5,000, with $140 being the average.

About one-third of the settlement, or $434,750, is earmarked for attorneys’ fees, and another $90,000 will be paid to cover litigation costs and settlement administration.

The terms are a fair and reasonable resolution, Judge Catherine C. Eagles of the U.S. District Court for the Middle District of North Carolina said when she granted final approval Jan. 3.

The case, filed by about 20 drivers in July 2016, was the first Fair Labor Standards Act lawsuit against Uber to win nationwide collective action certification, their lawyer said in July 2017. A settlement avoids a judicial determination of whether drivers are correctly classified as employees or independent contractors.

Napoli Shkolnik in New York, Lewis & Roberts PLLC in Charlotte, N.C., and Imbesi Law PC in New York represented the drivers. Littler Mendelson in Charlotte, New York, San Francisco, and Pittsburgh, Pa., represented Uber and subsidiary Rasier LLC.

The case is Hood v. Uber Techs., Inc., M.D.N.C., No. 1:16-cv-00998, 1/3/19.

To contact the reporter on this story: Jon Steingart in Washington at jsteingart@bloomberglaw.com

To contact the editors responsible for this story: Jo-el J. Meyer at jmeyer@bloomberglaw.com; C. Reilly Larson at rlarson@bloomberglaw.com