Judge Rejects Uber Settlement, Saying It Lowballs California Labor Claims
US Judge Edward Chen ruled against the $100 million proposed settlement between Uber drivers in California and Massachusetts. Judge Chen believes that $100 million is not enough to adequately compensate the company's drivers, especially the $1 million allocated for claims under California's Private Attorneys General Act. Previously, if it was ruled that Uber drivers were in fact employees (not independent contractors), the California Labor and Workplace Development Agency had estimated the claims to be ~$1 billion. With Uber's court date rapidly approaching, the settlement's rejection pressures the company to offer a higher payout if they want to avoid a verdict that could cost them billions in additional wages.
See "Judge Rejects Uber Settlement, Saying It Lowballs California Labor Claims", Daniel Fisher, Forbes, August 19, 2016