Uber will pay $100 million to settle class action lawsuits

The payout, announced by the company Thursday, will settle two class action lawsuits covering 385,000 drivers in California and Massachusetts, reports MarketWatch. The suits were closely watched as they sought to force Uber to classify drivers as employees, instead of contractors. As a result of the settlement, Uber can continue to treat drivers as contractors but will have to adhere to the following conditions:

• Pay up to $100 million in fees to drivers in California and Massachusetts

• Revise its practice of deactivating drivers from the app with little warning or recourse

• Explain its decisions for terminating drivers

• Give warnings before removing drivers from the service

• Allow drivers to post signs in their cars asking for tipsMG