Uber paid $84m to settle lawsuits and keep drivers as independent contractors
Apr22
on April 22, 2016
at 7:40 am
Since its inception, Uber has maintained that the drivers on its platform are freelancers and not employees of the company. That helps the company keep costs low, because it doesn’t have to pay monthly salaries or benefits. But maintaining the ‘independent contractor’ status of its workforce has cost it a pretty penny. Uber has settled lawsuits in California and Massachusetts by paying $84 million to the 385,000 plaintiffs in two cases brought against it in 2013, over whether its drivers should be classified as employees. In concession, the company has promised to work with drivers to create and fund a…
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