In a setback for Uber, a federal judge has ruled that drivers in California can sue the company as a group over the question of whether they're merely contractors or are employees entitled to additional benefits.
The judge had to decide whether the case would focus on just the handful of drivers named in the litigation or whether it could be a “class action” lawsuit whose outcome will apply to up to 160,000 current and former Uber drivers in the state.
On Tuesday, District Court Judge Edward Chen granted class-action status for the issue of whether the drivers are employees or contractors and whether they should have received tips that Uber allegedly withheld.
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