Uber settlement keeps independent contractor business model

April 22, 2016 0 COMMENTS

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.

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.”

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Independent contractor model survives Lyft settlement

January 28, 2016 0 COMMENTS

Lyft, a ride-hailing service that uses independent contractors as drivers, has agreed to settle a proposed class action lawsuit in California by paying $12.25 million and giving drivers certain protections, but the settlement doesn’t call on the company to reclassify its drivers as employees.

The larger ride-hailing service Uber also is facing court action. The Uber lawsuit is certified as a class action and is scheduled for a June trial to determine whether its drivers are employees or contractors.

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