Uber pays $100 million to settle class action lawsuits

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What is the future of Uber drivers and Michigan workers’ compensation?

The Wall Street Journal is reporting that Uber has settled two class action lawsuits for a $100 million. This ends current litigation in California and Massachusetts about whether its drivers should be classified as independent contractors or employees.

According to Law 360, Michigan has now seen its first lawsuit against the ride sharing service. Two Uber drivers have filed in the U.S. District Court for the Eastern District of Michigan alleging employee misclassification.

We find these lawsuits fascinating because it shows how technology is changing traditional notions about employment. Independent contractors get none of the protections that employees receive under workers’ compensation. This means Uber drivers are on their own if they suffer a workplace accident.

Amendments to Michigan’s Workers Disability Compensation Act in 2011 changed who is thought to be an employee. On and after January 1, 2013, services are employment if the services are performed by an individual whom the Michigan Administrative Hearing System (MAHS) determines to be in an employer-employee relationship using IRS revenue ruling 87-41. This requires a weighing of 20 common law factors with a focus on direction and control.

Michigan law has always been somewhat confusing when it comes to independent contractor status. We are not sure how the Michigan litigation is going to end. However, we are certain that new rules are needed to protect Uber drivers and encourage business innovation.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.

Related information:

What’s the big deal about employee misclassification?

Photo courtesy of Creative Commons, by ClearFrost.

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Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

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This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.