California Uber Driver Lawsuit 2025: Can You Get Back Pay?

California Assembly Bill 5 (AB5), passed in September 2019, has reshaped worker classification laws—particularly for Uber and Lyft drivers. The law presumes most workers are employees unless companies can prove otherwise using the ABC test [2].

Previously classified as independent contractors, many gig workers—including rideshare drivers—may now qualify as employees, giving them access to critical labor protections.

Employee Rights Under AB5

If classified as employees, drivers gain:

• Minimum Wage – Guaranteed hourly pay in line with state law.
• Overtime Pay – Extra compensation for working over 40 hours per week.
• Expense Reimbursement – Coverage for fuel, maintenance, and other job-related costs.
• Benefits – Access to health insurance, sick leave, and unemployment benefits.

What Uber and Lyft Must Now Provide

• Proper Classification – Companies must ensure workers meet the ABC test if classified as independent contractors.
• Fair Wages – Timely and legal payment, including overtime and reimbursements.
• Employee Benefits – State-mandated protections such as paid leave and insurance.

This law “made properly classifying workers as independent contractors much more difficult by conclusively establishing a presumption that a worker is an employee, placing the burden on employers to prove otherwise and by applying a more stringent test for workers to qualify as contractors, said Netta Rotstein, HR consultant at Engage PEO, an outsourcing firm based in Ft. Lauderdale, Florida. The law’s constitutionality continues to be challenged in court, and while the verdict is still out, the number of misclassification cases is expected to rise.

Common Violations & Enforcement

Despite AB5, companies often misclassify workers to avoid extra costs. Common violations include:

• Misclassification – Labeling employees as independent contractors to sidestep labor laws.
• Wage Theft – Failing to meet minimum wage or overtime pay requirements.
• Denial of Benefits – Refusing to provide legally mandated protections.

California’s Labor Commissioner is actively pursuing lawsuits against Uber and Lyft, enforcing AB5 and holding companies accountable for wage theft and misclassification. As legal battles continue, the future of gig worker rights remains a hot topic in California’s labor landscape.

Uber in Numbers: Key Stats Every Driver Should Know

Uber’s financial and operational data reveal the platform’s massive growth and the evolving landscape for drivers. Here’s a closer look at Uber’s earnings, user base, and what it means for drivers.

Uber’s Revenue & Growth

In 2023, Uber reported a $37.2 billion revenue, a 16% increase from the previous year. The revenue breakdown:

• Ride-Hailing Services: $19.6 billion
• Delivery Services (Uber Eats): $12.1 billion
• Freight Services & Other Revenue: Remaining share

With an 11% jump in active users, Uber had 137 million people using its ride-hailing and food delivery services each month. Drivers collectively completed 9.44 billion trips—nearly 2 billion more than in 2022.

How Much Do Uber Drivers Make?

As of January 2025, the average hourly wage for an Uber driver in the U.S. is $21.12, with top earners making up to $25 per hour, depending on demand and location.

Common Expenses:

• Gas & Fuel Costs – A major portion of driver expenses.
• Vehicle Maintenance & Repairs – Regular servicing to keep cars in good condition.
• Mileage Depreciation – Wear and tear that lowers a vehicle’s resale value.

How Many Hours Do Drivers Work?

• Part-Time Dominance: 94% of drivers work fewer than 20 hours per week.
• Total Hours Logged: In 2023, the median U.S. driver recorded 75 engaged hours and drove approximately 1,647 miles while transporting passengers.

The Impact of Misclassification on Driver Pay

Many drivers argue that being classified as independent contractors lowers their real earnings. When factoring in expenses and downtime between trips, some drivers report making as little as $3 per ride.

This lack of employee benefits—such as health insurance, minimum wage guarantees, and overtime pay—continues to fuel debates about Uber’s labor policies.

As Uber grows, these numbers highlight the challenges drivers face and the ongoing battle over worker classification and fair compensation in the gig economy.

Know Your Rights in the California Uber Driver Lawsuit

If you are considering joining the California Uber Driver lawsuit, understanding your legal rights is essential. Drivers participating in the case are protected under California labor laws, ensuring they can seek compensation without fear of retaliation or job loss. Here’s what you need to know.

Your Legal Protections as a Driver

Uber and Lyft drivers involved in the lawsuit are safeguarded by several key labor laws and legal precedents. These protections are designed to ensure fairness while the case unfolds.

1. Protection Against Retaliation

• Uber and Lyft cannot punish drivers for joining the lawsuit or reporting labor violations.
• California law explicitly prohibits termination, demotion, or discrimination against drivers who assert their legal rights.
• If you face retaliation, you have the right to file a complaint with the California Labor Commissioner or take legal action.

2. Right to Keep Driving

• Participating in the lawsuit does not impact your ability to work for Uber or Lyft.
• You can continue driving as an independent contractor while the legal process is ongoing.
• Companies cannot block or deactivate your account simply because you joined the lawsuit.

3. Arbitration Agreements Don’t Apply Here

• Many drivers worry that Uber’s forced arbitration agreements will prevent them from joining the lawsuit. However, recent court rulings have clarified that these agreements cannot be used to block class action participation.
• The California Supreme Court refused Uber’s appeal, reinforcing drivers’ rights to collective legal action.

If you are eligible, this lawsuit could be your opportunity to recover back pay, overtime wages, and reimbursement for expenses that you were unfairly denied.

By joining the lawsuit, you’re not only standing up for your rights—you’re helping shape the future of gig worker protections in California.

How to Join the California Uber Driver Lawsuit

If you drove for Uber or Lyft in California and believe you were misclassified as an independent contractor, you may be eligible to join a lawsuit seeking back pay, expense reimbursements, and benefits. Here’s what you need to know to get started.

Who Can Join the Lawsuit?

To qualify, you must meet the following criteria:

• You drove for Uber or Lyft in California anytime between January 1, 2016, and December 15, 2020.
• You were classified as an independent contractor, not an employee.
• You provided ride-hailing services within California, including major cities and suburban areas.
• You have supporting documentation, such as pay stubs, tax documents (1099 forms), or records of hours worked and expenses incurred.

If you have previously participated in a settlement related to Uber or Lyft’s classification issues, your eligibility may be affected.

Steps to Join the Lawsuit

1. Confirm Your Eligibility – Review the criteria above and gather any documentation that proves you worked as an Uber or Lyft driver during the specified period.
2. Consult a Lawyer – Contact an attorney specializing in labor law or class-action lawsuits for a free evaluation of your case.
3. Submit Documentation – Provide necessary documents, such as pay stubs, tax records, and receipts for expenses related to driving.
4. File Your Claim – Once your eligibility is verified, your attorney will handle the legal filing process on your behalf.

What to Expect After Joining

Once you’ve joined the lawsuit, your legal team will keep you updated on progress, including:

• Confirmation of Participation – You’ll receive official confirmation that your claim has been filed.
• Ongoing Case Updates – Your attorney will notify you about key developments, court dates, and potential settlement discussions.
• Confidentiality & Communication – All personal details and documents you provide will remain confidential and used solely for the lawsuit.

By taking these steps, you can help ensure that your rights as a driver are protected and that you receive the compensation you may be owed.