IDG Contributor Network: Uber wins a major coup for the gig economy
The most important tech startup in the world just scored a major victory.
A settlement with Uber drivers -- the pay-out will be around $100M total, or a few hundred per driver -- means proponents of the gig economy can breathe easy.
Two cases reached a resolution yesterday in California and Massachusetts. The 450,000 drivers who essentially work as freelancers running their own business will not be viewed as employees. Uber will not have to pay expenses or deal with any employment issues, like social security, health insurance, or unemployment compensation. As part of the settlement, Uber has to give drivers multiple warnings before they deactivate them from the service.
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