The lawsuit was filed by Ingrid Avendaño, Roxana del Toro Lopez and Ana Medina in October 2017, alleging that Uber engaged in unfair business practices and violated the California Equal Pay Act and Private Attorneys General Act.
“In this system, female employees and employees of color are systematically undervalued compared to their male and white or Asian American peers because female employees and employees of color receive, on average, lower rankings despite equal or better performance,” the plaintiffs claimed.
In November, following removal of the proposed lawsuit to federal court, the plaintiffs filed an amended complaint which establishes two classes, one for California workers and the other for a nationwide class of workers. According to the amended complaint, Uber was in violation of 10 state and federal laws or business codes.
The settlement, which requires final approval, stipulates $28,000 to each of the estimated 420 plaintiffs who claim to have been negatively impacted by Uber’s performance evaluation system. Further, the settlement requires Uber to work with an outside company to develop a new system for promoting, evaluating and compensating workers.
Uber must also internally monitor base salaries, bonuses and promotions for possible adverse impacts on workers of color and women, as part of the settlement agreement.
The financial disbursements include $50,000 to named plaintiff del Toro Lopez and $30,000 to Medina.