Uber to pay $100 million to settle lawsuits and keep drivers as independent contractors

Uber has agreed to pay up to $100 million to settle lawsuits with its drivers in California and Massachusetts over whether they are independent contractors or employees. The San Francisco-based ride-hailing company says it will pay an initial sum of $84 million to the estimated 385,000 drivers involved in the class-action suit and, if the company's valuation grows to 150 percent its current value, it will tack on an additional $16 million.

The drivers involved in the suit argued they should be considered employees, not freelancers, and receive worker protections and expense reimbursement. But the settlement allows Uber to maintain the drivers' status as independent contractors, a key component for the company's on-demand business model.

Uber has also agreed to policy changes that will reduce its control over drivers and has said it will help drivers form an association.

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