Ridesharing company, Uber has agreed to pay up to $3 million to settle a class-action lawsuit slammed on it on behalf of 2,421 drivers in New York.
The drivers accused Uber of breach of contract for including sales tax and a “Black Car Fund” fee, which relates to workers’ compensation, in fares when calculating service fees, thereby increasing the amounts owed.
Although Uber denied all allegations, it decided to pay the said amount without admitting wrongdoing to avoid the cost and inconvenience of litigation.
The settlement covers Uber drivers who have used the Uber app to arrange rides in New York since Dec. 29, 2009, and whose claims are not subject to arbitration.
It follows Uber’s agreement to pay more than $80 million to roughly 96,000 drivers in New York after the company admitted in May to having inadvertently underpaid drivers for two-and-a-half years, court papers show.