Newest Accusation of Corporate Malfeasance
One thing we know about Uber and Lyft is that traditional taxi cab companies are on the brink of extinction. But in a California case at least, many cabbies may be drooling at a new era of hefty fares.
What is the reason for all this? It appears that Uber stepped in it again. The ride sharing company again is under the microscope. A former employee accused Uber of unfair fare practices.
In fact, the former driver filed a mighty lawsuit. The case, expected to be a significant precedent, is in the works. It alleges that Uber deliberately underpaid its employees. Considering a slate of recent cases, this seems very plausible. Now with victory in a North Carolina court, the floodgates opened.
Ars Technica reported on the suit. The case is from Michael Hood. Originally filed in 2016, Hood started a proposed class action lawsuit that the company misclassified him as an independent contractor instead of an employee. This resulted in him being paid well under minimum wage. In fact, in one case he alleges he made under $2 an hour. This is just one of over a dozen similar cases against the company.
Is This Just the Beginning?
Hood’s attorney expects thousands of potential litigants to join the case. All told, this could mean Uber on the hook for hundreds of millions in back pay. There is a local case, O’Connor v. Uber advancing through the case. If the O’Connor and Hood cases both proceed, Uber may face a wave of suits from across the country.
Uber consistently used its influence to underpay workers. This includes manipulating the drivers themselves. Furthermore, this also includes some sleazy inroads to the government at all levels. However, Uber faces incredible push back against its model. Some major rape, assault, and even murder cases came to the spotlight.
Also, Uber faces off against Google. The two locked horns in a major self-driving car conflict. All of these add up. Uber lost some major executives. The company is standing on its last legs. Perhaps this major suit will the be the end of it. Perhaps might just be one part of it.
In any event, we can see how traditional, licensed cab companies may be back in business, as Uber potentially declares bankruptcy. But beware, should that happen, look for cabbies to make claim they too, are employees, entitled to matching SSN, work comp, and a whole litany of job killing rights. For more info, including how these cases turned out, keep it here at the Ehline Law Firm Personal Injury Attorneys, APLC.