Home News Uber Settles Background Check Suit for Up to $25 Million

Uber Settles Background Check Suit for Up to $25 Million

PHOTO: Mock-up via Panda

Uber has gotten a lot of bad PR as of late. Like that time they hired a madman, who is currently on his way to death row if the justice system works out the way it should.

Speaking of justice, back in 2014, San Francisco and Los Angeles prosecutors filed suit on the ride sharing app because of its inept background checks. In fact, prosecutors believe Uber’s regulations for hiring suffered in comparison to those of taxi drivers.

Why? Evidently, Uber hasn’t been a fan of fingerprint checks for past convictions. Instead, Uber’s process relies on a name search of other criminal databases and motor vehicle department files going back seven years. In other words, no one can fake a name or steal an identity, so no worries, right?

Not so much. That’s why under the settlement, Uber agreed to pay $10 million within 60 days. If the company does not comply with the terms over the next two years, Uber will have to pay an additional $15 million, prosecutors said.

“The result we achieved today goes well beyond its impact on Uber,” San Francisco District Attorney George Gascón said in a written statement. “It sends a clear message to all businesses, and to startups in particular, that in the quest to quickly obtain market share, laws designed to protect consumers cannot be ignored.”

Think people are ganging up on the $60 billion enterprise? These same guys sued Lyft for the same reasons and got the same result — only for $500,000 in damages.


By Shawn Paul Wood, Adweek, PRNewser, SouthFloridaReporter.com, April 12, 2016