Colorado fines Uber $8.9M for inadequate driver background checks

DENVER — Uber faces $8.9 million in fines in Colorado after investigators found 57 drivers had felony records, drunk driving conditions and violations that should have prohibited them from employment.

The investigation was launched this year by the Public Utilities Commission following an incident in Vail where a driver was accused of assaulting a passenger, the Denver Business Journal reports. 

Investigators found while looking into drivers’ criminal records that many of them had major moving violations, felony convictions and suspended licenses. Staff also says that in some cases background checks were never performed.

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“PUC staff was able to find felony convictions that the company’s background checks failed to find, demonstrating that the company’s background checks are inadequate,” PUC Director Doug Dean said in a statement, reports the DBJ. “In other cases, we could not confirm criminal background checks were even conducted by Uber.”

The PUC said it looked at Lyft as well but did not find issues in background checks.

“We recently discovered a process error that was inconsistent with Colorado’s ridesharing regulations and proactively notified the Colorado Public Utilities Commission (CPUC),” Uber said in a statement. “This error affected a small number of drivers and we immediately took corrective action. Per Uber safety policies and Colorado state regulations, drivers with access to the Uber app must undergo a nationally accredited third-party background screening. We will continue to work closely with the CPUC to enable access to safe, reliable transportation options for all Coloradans.”

But Dean said it is not true that Uber proactively identified the PUC about the issue. In fact, Dean said it took Uber 10 days to respond to a request for more information.

Colorado was the first state to officially legalize Uber and Lyft, known as transportation network companies, in 2014.

Uber is being fined $250 for not responding to the PUC’s initial request, and $2,500 per day for each day a disqualified driver was working.

Uber can contest the judgment of pay half of the $9 million fine within 10 days to settle the case.