Today's Hard|Forum Post
Today's Hard|Forum Post

Friday April 22, 2016

Uber To Pay Up To $100M To Settle Suits With Drivers

Uber has just announced a settlement that has the company paying up to $100 million to 385,000 drivers. Payments are based on the actual miles driven with a passenger in the car. Drivers who logged more than 25,000 miles could get as much as $8,000 or more. As part of the settlement, drivers will remain independent contractors.

Uber will pay up to $100 million to drivers who had sought to be classified as employees, settling two lawsuits that posed a threat to the company’s on-demand business model, which relies on independent contractors. The San Francisco ride-hailing company Thursday evening announced it will pay an initial sum of $84 million to settle cases in California and Massachusetts to some 385,000 drivers. Uber, which is valued at $62.5 billion, said it will pay the drivers an additional $16 million if the company’s valuation reaches 1.5 times its current value after it goes public or if it gets bought.