By Linda Chiem

A California federal judge’s rejection on Thursday of a proposed $100 million class action settlement for Uber drivers allegedly stiffed on tips and work expenses may discourage the ride-hailing giant from sweetening the deal, instead prompting it to aggressively step up its defense of its independent-contractor business model, experts say.

U.S. District Judge Edward M. Chen’s refusal to preliminarily sign off on the $100 million deal — $84 million of which was a lock for drivers while the rest was contingent on the ride-hailing giant launching…

If arbitration is found to be permitted as to these claims, it changes the dynamic considerably and makes it more of an uphill battle to find a resolution, according to Michael Landen, a partner at Kluger Kaplan Silverman Katzen & Levine PL who specializes in labor and employment litigation.

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