Uber to Pay $20 Million to Settle Driver Classification Suit
- Resolution of driver status cases comes ahead of planned IPO
- Uber won key rulings finding its arbitration demands legal
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Uber Technologies Inc. will pay $20 million to settle California lawsuits challenging the company’s classification of drivers as independent contractors, and not employees owed the benefits of traditional employment.
Resolution of the long-standing fight over benefits and pay comes as Uber is preparing for its initial public offering later this year. The drivers attacked the ride-sharing company’s business model of treating them as contractors to avoid the costs of paying a minimum wage, overtime, sick leave and health insurance.