Uber settlement keeps drivers as contractors in 2 states
SAN FRANCISCO (AP) — Uber has agreed to pay up to $100 million and make several policy concessions to settle a pair of major class-action lawsuits in two states that will keep its drivers independent contractors instead of employees, both sides announced Thursday night.
The settlement is a major step toward the ride-hailing company keeping its thriving business model that has been threatened as drivers have sought a more secure status and more bargaining rights.
In a concession touted by the plaintiffs, Uber will allow drivers to put signs in their cars saying "tips are not included" in the price of a ride and would be appreciated.
San Francisco-based Uber also agreed to improve its systems for communicating with drivers about their ratings and why they are terminated, to allow arbitration in disputes with drivers, and to help start drivers' associations in both states.
Federal law does not extend collective bargaining rights to independent contractors such as architects, masseuses or workers dispatched through mobile applications such as Uber and Lyft.