It’s been a common question in California courts—when should a worker be classified as an independent contractor? Drivers for ride-hailing giant Uber will continue to be independent contractors under the terms of a settlement of class-action lawsuits in California and Massachusetts if the settlement receives court approval.
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The settlement, announced on April 21, will require the company to pay drivers an initial $84 million and possibly as much as $100 million. Despite the financial hit, Uber is claiming victory in what it calls the key issue in the lawsuits—whether its drivers should be classified as independent contractors or employees. That question is likely to come up again, according to an attorney following developments affecting the use of independent contractors in the “sharing economy.”