A California federal judge granted class-action status Tuesday to a lawsuit by three Uber drivers challenging the company’s position that they are independent contractors as opposed to employees.
The action comes as such work arrangements are facing scrutiny in courts and from the federal government.
Three drivers are seeking reimbursement from Uber for their daily expenses, including gasoline, which they buy themselves, and tips that they claim the company did not pass along from customers. U.S. District Judge Edward Chen in San Francisco ruled that the case would be expanded to include other California-based drivers for the ride-sharing company.
That could cover as many as 160,000 drivers, Reuters reported. The company had not issued a statement Tuesday evening.
Numerous businesses hire people as contractors rather than employees, a designation that gives workers, in theory, more autonomy in terms of dictating the hours and conditions under which they work. It also releases the employer from many of the obligations under workplace rules.
Critics, particularly in organized labor, have said the designation is often abused by employers.
California has been a tough legal climate for Uber. The state’s labor commissioner ruled in June that a driver was an employee. The case is being appealed by the company.
Last month, the Labor Department issued a new advisory for all employers indicating that it would take a harder look at cases where “misclassification” is charged by applying an “economic realities” test.
