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Uber Pays Drivers $20 Million to Settle Contractor Dispute | Reason

Uber is out $20 million. The ride-hailing company has agreed to settle a six-year-old lawsuit with drivers who argued they should be classified as employees—not contractors—and therefore deserve benefits and wage protections.

Although Uber will hand a decent payout to the 13,600 drivers named in the suit, the company will not change their employment status. That’s a victory for its freelance-based business model amid an onslaught of similar lawsuits.

Shannon Liss-Riordan, an attorney for the drivers, calls the settlement “substantial.” Drivers will pocket about 37 cents for each mile they’ve driven for Uber, which, on average, will amount to more than $1,000 per person.

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Uber Pays Drivers $20 Million to Settle Contractor Dispute – Hit & Run : Reason.com.