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.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Is Trump's tariffs plan working?
Today's Big Question Trump has touted 'victories', but inflation is the 'elephant in the room'
-
What are VPNs and how do they work?
The Explainer UK sees surge in use of virtual private networks after age verification comes into effect for online adult content
-
Why is it so hard to find an 'eligible' man?
In the Spotlight The lack of college-educated suitors is forcing women to 'marry down'
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement