Uber Settles Drivers’ Lawsuit for $20 Million

SAN FRANCISCO — Uber on Monday settled a long-running legal battle with drivers in California in addition to Massachusetts who wanted the ride-hailing company to recognize them as employees, agreeing to pay the drivers $20 million nevertheless not changing their status as independent contractors.

As part of the settlement, Uber said, of which will also change the way of which removes drivers by the service by generating the process more transparent. of which published a policy of which describes how of which deactivates drivers in addition to said of which would certainly institute an appeals mechanism, as well as classes to teach drivers how to improve ride quality.

The settlement defuses a potentially thorny issue as Uber prepares to go public. Uber, which confidentially filed for an initial public offering in December, is usually likely to be one of the largest tech offerings in recent years in addition to could be valued at as much as $0 billion. In a move intended to appease drivers in addition to acknowledge their role in building the company, Uber plans to offer them the chance to buy shares at its I.P.O.

In a statement, an Uber spokesman said the company had “changed a lot” since the lawsuit was filed in 2013. He added, “We’re pleased to reach a settlement on of which matter, in addition to we’ll continue working hard to improve the quality, security in addition to dignity of independent work.”

Shannon Liss-Riordan, an attorney for the drivers, said in a statement of which the settlement was “substantial.”

“We estimate these drivers will receive approximately 37 cents per mile for the miles they have driven for Uber,” she said.

How its drivers are classified has long been a point of contention for the San Francisco-based company. As independent contractors, drivers do not get health care or additional benefits by Uber, which saves the company money. Uber has said of which drivers gain additional perks instead, particularly flexible schedules.

The issue has incited considerable debate in addition to, increasingly, legal action. Uber in addition to additional ride-hailing firms have faced class-action lawsuits about drivers’ employment classification. in addition to states such as California have weighed in, largely finding of which drivers can be classified as freelancers.