Uber’s $100M lawsuit settlement will have a big impact on its drivers – DT Daily Live

Ride-sharing company, Uber, just settled a huge driver lawsuit to the tune of $100 million. Many are suggesting Uber is dodging a bullet with this settlement, and that the debate over whether its drivers are independent contractors or not may be coming to a close.

Yesterday, Uber said it settled a couple of class-action suits covering 385,000 drivers in California and Massachusetts that will allow the company to continue classifying its drivers as contractors, rather than employees. The settlement has ramifications on how Uber chooses whether or not to let an individual continue as a driver. As part of the settlement, Uber will have to retool its policies on deactivating drivers with little or no advance warning or explanation. Now the company will have to give drivers a warning, and explanations before it cuts them off from the Uber driver app.

Uber is also supporting a sort of Uber driver’s association in the two states, though the assembly will fall short of a proper union organization. The company plans to meet with its drivers and discuss important issues and work out solutions to common problems. Interestingly, legislation in California that would allow Uber and Lyft drivers to unionize was just pulled by the legislator who submitted it. Lorena Gonzalez of San Diego said there needs to be more time to debate the topic, so the bill is probably dead for the year.