Uber Will Pay Up To $100 Million To Settle Misclassification Lawsuits

  29 July 2016

Uber has settled two lawsuits brought by drivers who argued they should be classified as employees instead of independent contractors.

Uber has agreed to pay up to $100 million to the 385,000 drivers, but their employment status will not change, so they will remain classified as independent contractors. The class actions were brought in California and Massachusetts. Uber, which is valued at up to $70 billion, will make an initial $84 million dollar payment, and another $16 million if it goes public. Under the terms of the settlement, Uber must give drivers more warning before they are removed from the service. The company is also required to establish an appeals process for divers who believe they have been unfairly terminated.The settlement, which must be approved by a judge, allows for the creation of "driver associations" that will represent workers in talks with management. Read more here.