Uber Settles Driver Class-Action Suit

Uber agreed to pay as much as $100 million to settle a class-action lawsuit over the employment status of its drivers in California and Massachusetts. The ride-hailing service agreed Thursday to cough up $84 million to about 385,000 drivers represented in the case, while $16 million is contingent on whether the company holds an initial public offering and if its value increases. However, Uber drivers will continue to operate as indpendent contractors, even though the suit claimed drivers were entitled to employee benefits such as paying minimum wage and the employers’ share of Social Security. In a blog post announcing the settlement, Uber also revealed policy changes including providing more information on how and why drivers are deactivated and helping to create “driver associations.” The settlement has yet to be approved by a San Francisco federal judge.