Staffing Industry Analysts (SIA) reports that Uber acknowledged that settlement of arbitration claims could range between $146 and $170 million.
Human cloud, ride-sharing firm Uber Technologies Inc. updated investors on independent contractor misclassification claims against the company — including up to $170 million for individual drivers claiming misclassification — as well as other challenges in a filing today with the US Securities and Exchange Commission. Uber’s filing comes one day before its expected initial public offering, and the day after drivers in several countries worked to organize a strike over pay.
Uber noted it set aside $132 million to pay independent misclassification claims brought by drivers in arbitration hearings. The filing said that as of May 8, 60,000 drivers in the US have or may file for arbitration claiming they were misclassified as independent contractors. These drivers are not included in court hearings because they agreed to have their claims against the company heard individually in arbitration outside of court. Uber wrote the approximate range of settlements, along with attorney’s fees; this amount is expected to be $146 million to $170 million.
The arbitration claims are in addition the $20 million Uber agreed to pay to settle a lawsuit by drivers in California and Massachusetts who claimed they were misclassified as independent contractors. A final approval hearing in US court on this settlement is scheduled for July.
Uber’s filing also cited possible risks over its license to operate in London.
Read the full story at Uber’s arbitration of IC misclassification claims in US could total $170 million