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Uber To Pay Up To $100 Million To Settle Driver Lawsuits

Posted on April 22, 2016

Uber will pay up to $100 million to drivers who had sought to be classified as employees, settling two lawsuits that posed a threat to the company’s on-demand business model, which relies on independent contractors.

The San Francisco ride-hailing company Thursday evening announced it will pay an initial sum of $84 million to settle cases in California and Massachusetts to some 385,000 drivers. Uber, which is valued at $62.5 billion, said it will pay the drivers an additional $16 million if the company’s valuation reaches 1.5 times its current value after it goes public or if it gets bought.

The company also agreed to policy changes that reduce its control over drivers, shifting to be more in line with an independent contractor relationship.

Los Angeles Times article here

Related Topics: employee vs independent contractor, independent contractor issues, labor laws, lawsuits, Legal Issues, TNCs, Uber

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