Uber To Pay Up To $100 Million To Settle Suits With Drivers

Jeff Chiu / AP

Uber announced Thursday it had agreed to pay up to $100 million and make numerous policy changes as part of a settlement in two class action lawsuits filed by drivers.

The settlement represents a major victory for the ride-hailing company. The case began when Uber drivers sued in California and Massachusetts, arguing they should be classified as employees. Uber countered that its drivers are instead contractors, and thus not entitled to the same benefits as full-time employees.
The settlement allows Uber to continue classifying its drivers as contractors.
As part of the settlement, Uber also agreed to pay $84 million, with another $16 million contingent on the company’s value increasing in the future, Shannon Liss-Riordan, an attorney who worked on the case, said in a statement to BuzzFeed News.
Uber made several policy concessions to drivers as well, including providing more information on why drivers have been banned from the service and helping to create “drivers associations.”
Uber will also allow drivers to place signs in their cars telling customers that “tips are not included” and would be appreciated, according Liss-Riordan.
Other concessions to drivers include policies that prevent drivers from being kicked off the service for low acceptance rates, policies that provide drivers with warnings prior to deactivation, and panels where drivers can appeal their termination to their peers.