California Uber Driver Lawsuit | 2025 Latest Updates

California Uber Driver Lawsuit Overview

The California Uber Driver lawsuit centers on allegations of wage theft and worker misclassification. California’s Labor Commissioner has sued both Uber and Lyft for incorrectly classifying drivers as independent contractors instead of employees [1].

This misclassification has allegedly deprived thousands of drivers of minimum wage, overtime pay, and other benefits guaranteed under California labor law.

Nearly 5,000 drivers have filed claims seeking lost wages and expense reimbursements for driving-related costs.

Latest California Uber Driver Lawsuit Updates

February 2, 2025 – Uber and Lyft’s $175 million settlement agreement continues to be implemented, with Uber responsible for $148 million and Lyft paying $27 million. The settlement guarantees drivers a minimum hourly wage of $33.48 during “engaged time” (time spent picking up and transporting passengers).

October 2024 – Lyft faced a $2.1 million civil penalty as part of an FTC settlement for misleading drivers about earnings expectations, highlighting increased regulatory scrutiny over gig companies’ labor practices.

July 21, 2024 – A US District Court in the Northern District of California approved an $8.4 million settlement for drivers who used the Uber Rides app between February 28, 2019, and December 16, 2020, and Uber EATS drivers who used the app between June 28, 2016, and October 7, 2021, who rejected Uber’s arbitration agreement [2].

July 2024 – Uber and Lyft agreed to a combined $175 million settlement to resolve claims related to wage theft and driver misclassification, with Uber responsible for $148 million of the total amount.

Uber in Numbers: Key Stats

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.

Driver Statistics:

• 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.
• 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.

California Assembly Bill 5 (AB5) Reports and Statistics

California Assembly Bill 5 (AB5), passed in September 2019, fundamentally changed worker classification laws, particularly affecting Uber and Lyft drivers.

The law created a presumption that most workers are employees unless companies can prove otherwise using the ABC test [3].

Common violations under AB5 include:

• Misclassification – Labeling employees as independent contractors to avoid 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.

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. 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.- Netta Rotstein, HR consultant at Engage PEO, an outsourcing firm based in Ft. Lauderdale, Florida

Driver Misclassification Injuries & Side Effects

Misclassification as independent contractors has led to various financial and personal hardships for drivers:

• Financial Losses: Denied minimum wage protections and overtime pay
• Expense Burdens: Uncompensated vehicle expenses including gas, maintenance, and depreciation
• Benefit Gaps: No access to healthcare, sick leave, or unemployment insurance
• Tax Disadvantages: Higher self-employment tax burden compared to employee status

Do You Qualify for a California Uber Driver Lawsuit?

You may qualify for the California Uber Driver lawsuit if:

• 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
• You can provide supporting documentation of your work, 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.

Evidence Required for a California Uber Driver Lawsuit

To strengthen your case, you should gather the following documentation:

• Driver app logs showing hours worked and trips completed
• Income statements and 1099 tax forms
• Receipts for work-related expenses (fuel, maintenance, insurance)
• Communications with Uber or Lyft regarding work requirements
• Records of customer ratings and app-based performance metrics

Damages You Can Recover

As part of this lawsuit, you may be entitled to recover:

• Unpaid minimum wages for all hours worked
• Overtime compensation for hours worked beyond 40 per week
• Reimbursement for business expenses (vehicle costs, gas, maintenance)
• Meal and rest break penalties
• Interest on unpaid wages
• Attorney fees and legal costs

California Uber Driver Lawsuit Status

The lawsuits brought by the California Labor Commissioner remain pending in San Francisco Superior Court. These cases are being coordinated with other lawsuits filed by the Attorney General and city attorneys from major California cities.

The legal claims extend back to April 2017, though some lawsuits seek restitution for an even longer period. Both Uber and Lyft have signaled their intention to appeal certain aspects of the court decisions and settlements, primarily challenging the classification of drivers and the scope of financial compensation.

Uber and Lyft are thumbing their noses at the California legislature and the public officials charged with enforcing these laws, San Diego DA Mara Elliott said during a press conference. It’s time for Uber and Lyft to respect the law, their employees, and taxpayers, and it’s time for them to pay their own bills.

Statute of Limitations for California Uber Driver Lawsuits

In California, the statute of limitations for wage and hour claims is generally:

• 3 years for statutory violations (such as minimum wage and overtime violations)
• 4 years for breach of contract claims
• Claims under the Private Attorneys General Act (PAGA) must be filed within 1 year

These timeframes typically begin from the date of the violation. However, in cases of ongoing violations or when violations are discovered later, the court may apply the “continuing violation doctrine” or “discovery rule” to extend these deadlines.

FAQs

Take Action Now: Time-Sensitive Legal Claims

Time is limited to pursue legal action in the California Uber Driver lawsuit. California’s statute of limitations restricts the time you have to file a claim, typically 3-4 years from the date of violation.

With each passing day, you could be losing out on compensation that you rightfully deserve.

Our team at Schmidt & Clark, LLP offers:

• Free, confidential consultations to evaluate your case
• No upfront costs or fees to begin your claim
• Payment only if we win your case
• Experienced attorneys specializing in labor law and class action lawsuits

Don’t wait until it’s too late. Contact our team today to protect your rights and seek the compensation you deserve.

References

1. https://www.theverge.com/2020/8/5/21356096/uber-lyft-california-labor-commissioner-lawsuit-driver-classification

2. https://www.hcamag.com/us/specialization/employment-law/uber-enters-into-84-million-settlement-over-worker-misclassification-lawsuit/420508

3. https://www.shrm.org/topics-tools/employment-law-compliance/uber-signs-8-4-million-settlement-driver-misclassification