Uber settles class-action lawsuit with $10 million

As part of the court settlement, Uber will have to, in regular intervals, report its demographic data of its workforce, as well as develop a validated promotion assessment process.

Uber technologies Inc has agreed to settle a class-action lawsuit, brought by two women engineers who had accused the ride-services company of race and gender discrimination, by agreeing to settle the charges for $10 million.

The settlement, disclosed in a filing in the U.S. District Court for the Northern District of California, states that Uber has also agreed to reform its system of promotions, reviews and compensation.

Further, information in the filing states, the settlement compensates for emotional and financial harm to 135 men and 285 women of color.

On October 24, 2016, Ana Medina and Roxana del Toro Lopez, two Latin American software engineers, filed a class-action lawsuit in the U.S. Superior Court, followed by another lawsuit in the district court alleging class-wide gender and race discrimination.

According to the lawsuit, the employee ranking system at Uber was “not based on valid and reliable performance measures”; it preferred men who were either white or Asian employees. As a result of these discriminations, they lost out on their earnings, promotions and benefits, they said.

After the filing of the lawsuit, in a widely read blog in February 2017, another female engineer, described Uber’s work environment as one that fostered sexual harassment and one in which women were forced to tolerate if they wanted to be in Uber’s payroll.

As pat of the settlement, Uber will have to report, in regular intervals, demographic data to Uber’s workforce, as well as develop a validated promotion assessment process.

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Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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