Tuesday Digestif (20/2016): Why Uber drivers are unhappy about a lawsuit settlement πŸš™πŸš—πŸ˜ 

Tuesday Digestif: Weekly Perengo Newsletter on Labor Policy & HR Management

Happy Tuesday,


  1. Why Uber drivers are unhappy about lawsuit settlement
  2. How large retailers approach staffing or labor-optimization in 2016
  3. On reversed gender pay gaps and free meals

Classification Battle Not Over?

The Guardian reports that Uber could have faced damage of up to $852m if it were not for a $100m settlement of their April 2016 class-action law suit.

The mileage claims could have been calculated in 2 different ways:

  1. IRS’s fixed rate calculation: 50 to 56.6 cents per mile [total of $700m]
  2. Variable rate calculation: 16.5 to 24 cents per mile [total of $277m]

Regardless of the damages, if this state ruling will be approved by a federal judge it will set a firm precedent over the classification debate: 1099 contractors vs. W-2 employees.

Uber’s $100m driver payout could have been $852m, angering some drivers
Uber’s $100m driver payout could have been $852m, angering some drivers

Retail Hiring in 2016

Wendy’s Plans to Expand Self-Service Order KiosksΒ (URL) – Minimum wage increases pressure fast-food franchisors to rethink their operations.

Wendy’s plans to cut the share of owned & operated stores from 10% down to 5%.

Also the company is looking to deploy labor-saving technologies such as (1) self-service order kiosks, (2) mobile ordering, and (3) mobile payment.

Kroger Plans to Hire 14,000 (URL) – The country’s third-largest employer wants to add 14,000 new employees to its current 431,000.

Over the past 8 years the store chain has created more than 74,000 new jobs.

Treat Your Employees Right

Free Lunch and Dinner Makes SenseΒ (URL) – Free meals and drinks are a highly effective and reasonably cheap way of keeping young employees motivated.

This particularly makes sense if a company’s employee base is paid on a fixed base (not hourly).

Reversed Gender Pay Gap (URL) – A recent research paper found that in companies with highly-set diversity goals high potential women earn a wage premium over their male counterparts.

Please let us know what you liked, what you disliked and which topics you would love to see in the future.

Drop us a mail: hello@perengo.com

Have a great week,
Team Perengo

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