A Los Angeles state judge indicated she's comfortable approving a $7.75 million settlement against Uber Technologies Inc., one of several lawsuits brought against the San Francisco ride-hailing service for its contractor-based business model, Bloomberg reported.
The lawsuit was brought against the company for alleged labor-code violations. According to the 2004 Private Attorneys General Act, the state will keep 75% of any penalties won, and the remaining 25% will go to the workers who brought the case.
The settlement would offer about 1.6 million California Uber drivers an average of $1.08 each. This was Uber’s third attempt at approving the $1-per-driver settlement.
The tech giant is also facing a similar lawsuit in New York, and was recently ruled to be classified as a taxi service by the European Court of Justice, allowing for tighter regulation in the E.U.