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Uber Settlement Keeps Drivers As Independent Contractors, Not Employees

A man leaves the headquarters of Uber in San Francisco, Dec. 16, 2014. (Eric Risberg/AP)
A man leaves the headquarters of Uber in San Francisco, Dec. 16, 2014. (Eric Risberg/AP)

Uber reached a settlement in class-action lawsuits in California and Massachusetts, allowing the company to continue to classify workers as independent contractors rather than employees.

The settlement calls for Uber to pay as much as $100 million to about 385,000 drivers represented in the cases, but it allows the ride-hailing company to avoid having to pay minimum wage or contribute to workers’ Social Security.

The settlement could have broad implications for companies and workers in the sharing economy. Here & Now’s Jeremy Hobson talks with Mike Regan, columnist for Bloomberg Gadfly, about the deal.

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